- Ethereum price is retesting the $2,608 to $2,812 daily demand zone, hoping for a reversal.
- A bounce off this barrier is likely to revisit the lower limit of the daily supply zone, ranging from $3,188 to $3,393.
- A daily candlestick close below $2608 will invalidate the short-term bullish thesis.
Ethereum price faced rejection from a stiff resistance barrier twice, resulting in a double-digit correction. The resulting downswing is currently bouncing off a stable support level, suggesting the possibility of a trend reversal.
Ethereum price contemplates recovery
Ethereum price encountered the daily supply zone, extending from $2,608 to $2,812 on February 9 and February 15. The bulls failed to push through this hurdle, resulting in a more than 10% correction both times.
This move pushed Ethereum price into the daily demand zone, extending from $3,188 to $3,393. This area is crucial, and ETH is more than likely to witness some sort of a bullish reaction.
From a conservative standpoint, Ethereum price might set up a lower high around the 50-day Simple Moving Average (SMA) at $2,997. In some cases, the move could extend to retest the lower limit of the supply zone at $3,188.
On the other hand, a massively bullish outlook would require ETH to slice through the supply zone’s upper limit at $3,393 and make a run for the convergence point of the 200-day and 100-day SMAs at roughly $3,600.
ETH/USDT 4-hour chart
Regardless of the bullish outlook, if Ethereum price produces a daily candlestick close below $2,608, it will invalidate the short-term bullish thesis. In such a case, investors need not fret as there is another support area ranging from $2,525 to $2,324.
Therefore, bulls have a barrage of support levels and areas to help recover losses and give the uptrend another go.
