Ethereum (ETH) price has recently shown signs of fatigue on the four-hour chart after its recent rise. ETH, which retested the imbalance zone on the daily timeframe, may start a new uptrend before making a short-term correction. This pullback could be a critical buying opportunity for investors closely monitoring the market.
Short-Term Pullback Alert
Ethereum rose approximately 30% from its dip at $2,086 on Monday to $2,724, but this peak on Thursday occurred in the imbalance zone between $2,695 and $2,855 on the daily timeframe. Such imbalances typically lead to short-term pullbacks.
Therefore, investors may expect the price of the altcoin king to pull back towards the daily order block level around $2,459 or $2,400. This correction could indicate that the uptrend is still intact as the Relative Strength Index (RSI) on the four-hour timeframe falls towards the 50 level. Additionally, although the Awesome Oscillator (AO) indicator has given a buy signal by rising above the 0 level, it may fall below this level when ETH pulls back.
$2,300 – $2,400 Range is Important
According to on-chain data, there is strong buyer interest at the support level in the $2,300 to $2,400 range for Ethereum’s price. Around 1.4 million wallet addresses have purchased approximately 50 million ETH in this price range. Therefore, if the price falls to these levels, it is likely that off-market investors will accumulate more ETH, leading to a recovery.
Additionally, large investors, known as whales, have accumulated 550,000 ETH in the past week. This is an important factor supporting the altcoin king’s price rise potential following the U.S. Securities and Exchange Commission’s (SEC) green light for spot Ethereum ETFs.
