Can the Ethereum price reach $4k after a triple-support bounce?

By the technical structure which was shared by Wolf, an autonomous market analyst, Ethereum (ETH) seemed to be ready to go on with its ongoing bounce support motion toward $4,000.visit here

Classic uptrend pattern in the works? 

The function of the triple support bounce levels in raising the price of Ethereum by about 30 percent from its current position was explained by a chart analyst. The 0.786 Fib level of the retracement graph that is drawn from $1,716-swing low to $4,772-swing high, the lower horizon of an ascending triangle form, and a 21-month exponential moving average (EMA) are what the floor prices are comprised of.

The independent market analyst Wolf stated that the triple support bounce could cause Ether’s price to rise to $3,330. As a result of the action, the intersection would initiate a distinctive bullish reversal formation. 

For further information about the formation of the inverse head and shoulders, Ether could form three continuous troughs, the middle trough being the head lower than the other troughs (the left and the right shoulders). Besides, these three troughs will be upside down, hanging below a neckline. The neckline is resistance that the three troughs have in common.

Ideally, the price of Ether can go as high as the extreme distance between the head and the neckline if, above the inverse head and shoulders pattern, a break occurs. That means ETH is on its way to $4000. Although in its ascension to $3000, it could be rejected and if that happens, there will be a pullback.

ETH bulls ain’t out of the woods

Various on-chain pointers concur with the bearish perspective. For example, It is seen from Glassnode data that earlier in December 2021 there has been a rise in Ethereum balance on every single trade occurring simultaneously with the Ethereum decline in price.

In addition, Cointelegraph put it out in the early days of this week, that the ongoing Ether’s price bounce is a result of a wider correction that began in November 2021 after ETH attained its record higher than $4,850. By this, the token fell greatly to $2,159 which is about 55.65% before it rose by 30% to achieve its recent price levels.

The retracement could appear as a short reprieve in the overall downtrend of Ether. Therefore, there could still be a fall in price in correspondence to a “bear signal” formation seen in the ETH/USD daily price chart on the 1st of February, with a downside mark close to $2,000.

For Ethereum, it’s whales versus fish

More drawback clues for the ETH token is obviously because powerful buyers are absent from the market. For example, some of Glassnode’s standards reveal that since the beginning of 2021, Ether wallets holding less than 1,000 ETH and more than 100 ETH have experienced a steady decline.

Also, Ether is not exempted from the ongoing macroeconomic trends. For example, the cause of the price decline that occurred recently is mainly the imprint of the Federal Reserve’s plans to accelerate the withdrawal of its $120 billion a month COVID-19 stimulus program by March 2022, come next is at least three price hikes.

The United States central bank’s tapering plans have reduced investors’ enthusiasm for assets that are more risky damaging cryptocurrencies, gold, and tech stocks. Due to this, Ethereum’s basic prospect risks swerving relatively bearishly.

On the 1st of February, a new high record of over 74.137 million was reached from the count of ETH addresses with a non-zero balance. Wallets with at least 1 ETH were recorded last week and they peaked at almost 1.414 million. There was also a little improvement with Ethereum addresses that has a balance of at least 10,000 ETH.

Easing will return

Nick, from Econometrics who is a market analyst, said that as a result of the federal aggressive policy, the cryptocurrency market is still very risky. Nevertheless, there is still hope that the central bank would change to quantitative easing once more if the stock market experiences another fall of about 15%–20%.

Nick also stated that the best time to find good chances to make money is when the street is bloody.

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