Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice

A recent report highlighted how Ethereum entered the “Belief” phase of a rally, based on the Net Unrealized P/L metric. In general, a sustained rally on longer time frames has been observed in the past when the metric starts to turn green. In the short term, open interest behind Ethereum Futures has risen over the past two weeks, data from Glassnode shows. This indicated that market participants were willing to bet their capital as they saw a potential rally for ETH coming. Can ETH rise to $3800 and above?

ETH-1H

Source: ETH/USDT on TradingView

In the charts, the price has retested the 27.2% and 61.8% Fibonacci extension levels (yellow) in recent days as support. These levels have been plotted based on the ETH move from $2300 to $3043 at the end of February.

The $3411 level was also a significant longer-term level that has turned to support. Therefore, the price action on the charts was bullish. In the 1 hour time frame, while some volatility was seen, it was likely that ETH was heading towards the 100% extension level of $3787.

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Source: ETH/USDT on TradingView

The Bollinger Bands on the price chart expanded based on the previous day’s price action with ETH retesting $3411 as a support and climbing higher. The price was above the 20-period MA (orange), although it was not near the upper band, which would indicate short-term overheated market conditions.

At the time of writing, momentum was bullish according to both the MACD and RSI. The RSI was above the neutral 50, although not by much. The MACD was also above its zero line after forming a bullish crossover.

Conclusion

The longer-term on-chain stats and price action pointed to further bullishness for ETH. In the hours to come, a retest of the $3411 level could be considered a buying opportunity. Usually, a move past the 61.8% Fibonacci extension level would likely cause the asset to rise towards the 100% extension level, which in this case is $3787.



This post ETH: Decoding of profit levels and a potential for future rally

was published first on https://ambcrypto.com/eth-decoding-take-profit-levels-and-a-potential-for-future-rally/

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