Ethereum (ETH) experienced a dramatic overnight correction, largely driven by geopolitical tensions involving Hamas and Israel. As noted by Michaël van de Poppe, CIO & Founder of MN Trading Consultancy, despite this turbulence ETH managed a notable rebound, climbing back to a key level of 0.05 BTC. This recovery comes as altcoins across the board are showing positive performance today.
Further noted by CryptoJelle, an analyst, recently ETH ETFs recorded their first significant inflows, excluding the initial launch day. This development, coupled with a reduction in Grayscale selling pressure, suggests a potential shift in market dynamics. Observers will be keenly watching the upcoming ADP and FOMC reports, as these could further influence market movements.
Ethereum Q2 Report Shows 240% Price Surge as Upgrades ContinueAnalyzing the ETH/BTC trading pair on Binance’s 4-hour chart, several critical observations emerge. The price has faced resistance at the 0.05151 BTC level. This area, previously functioning as a support zone, is now acting as resistance. A decisive move above this level could indicate a trend reversal or, at the very least, a period of consolidation. The recent low around 0.04750 BTC may act as a critical support point. If the price falls below this threshold, further declines might follow.
The Relative Strength Index (RSI) currently shows that ETH/BTC has rebounded from oversold conditions. Presently, the RSI reading is neither overbought nor oversold, suggesting a neutral sentiment in the market. This neutrality could imply that the current market conditions are neither extremely bullish nor bearish.
Overall, the trend for ETH/BTC appears bearish, characterized by lower highs and lower lows. While the recent rebound may offer temporary relief, it might be a prelude to another potential decline.
Hence, traders should monitor the 0.05151 BTC resistance level closely. A sustained break above this point could signal a significant shift, while a drop below the 0.04750 BTC support could indicate further bearish momentum. At press time, Ethereum is trading at $3,321.13, with a 24-hour trading volume of $13,781,399,784. It has seen a slight decline of 0.48% over the past day.
