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ETH, the altcoin king, had bearish momentum earlier this week dropping as much as almost 10%, a low of $3,501 amid a broader crypto market correction. Despite the huge decline ETH has recovered to trade at $3,757 as of writing, supported by strong fundamentals and technical levels.
Ethereum’s sharp decline was triggered by profit-taking, with investors realizing over $2.5 billion in gains. This profit-booking spree marked a two-year high in futures liquidations for ETH, reflecting increased market activity during the correction.
However, the decline was short-lived, as ETH bounced off the $3,530 support level, a key threshold that prevented further downside. The recovery aligns with broader market sentiment, where institutional interest and robust on-chain activity underpin Ethereum’s bullish potential.
The altcoin king remains in a long-term uptrend, currently trading above its major moving averages. The 50, 100 and 200 MAs sit at $3,140, $2,812 and $3,002 respectively. This therefore indicates strong support levels below current prices.
The immediate resistance lies at $4,093, Ethereum’s double-top, its recent high and at the same time its 52-week high. Breaking above this level could push ETH to challenge its all-time high and even potentially set new records.
On the weekly chart, ETH has broken through a descending trendline resistance and successfully retested it during this correction. This shows potential for a parabolic move. If momentum persists, experts predict that Ethereum could follow Bitcoin’s 2021 bull run trajectory, potentially reaching $10,000 in the long term.
ETFs related to Ethereum in the spot market have attracted institutional investors, with current data recording flows of $ 1.41 billion. These ETFs give a price discovery along with a favourable sentiment and institutional interest in the future prospects for Ether.
New developments indicate that ethereum has strong fundamentals with active addresses and large value transactions rising during the past rally. These metrics captured increased user interaction and increased usage of Ethereum’s network.
Analysts like Pentoshi emphasize Ethereum’s structural improvements, including the impact of Ethereum 2.0 upgrades.
Although ETH performance has been rather disappointing compared to some other Digital assets such as Solana (SOL) and XRP, ETH bulls believe that the asset has the chance to start a new wave of All time highs.
At present, Ethereum’s increase of 61% from last year’s price may seem unimpressive compared to other assets or tokens, but its fundamental values and ETF-backed stability make it a powerful candidate for long term success.
The short-term outlook suggests a move toward $4,093 as the next target, with bullish momentum likely to increase if this resistance level is breached. Moreover, Ethereum fundamentals are underpinned by Ethereum’s increasing adoption of its network & applications in DeFi, NFTs & institutional investments.
The ability to recover from $3,530 support can be attributed to this digital asset as a measure of strength amidst a volatile market. ETH has favorable indicators with increase in ETF, good on-chain data and a position in the technical chart favoring an uptrend. For short-term traders, the next stop section to look at in terms of resistance is $4,093 while the long-term holders will also realize more profits as the Altcoins king chart continues to make higher highs.
