Ethereum Price Analysis: Is Another Correction Imminent for ETH or is $3K in Sight?

Ethereum’s price has been rapidly declining over the last couple of weeks since the rejection from the $3,500 resistance level.
However, the price might find a bottom soon.
Technical Analysis
By TradingRage
The Daily Chart
In the daily timeframe, the price has been dropping aggressively after breaking below the 200-day moving average, which is around the $3,200 mark.
Both the $3,000 and $2,700 levels have been lost as the price has even tested the $2,200 support zone.
Yet, yesterday’s price action was significantly bullish, sparking speculations about whether the market will experience a V-shaped recovery. Currently, the $2,700 resistance level is holding the price, preventing it from rallying higher. Therefore, a consolidation might occur in the short term before any significant move occurs.
Source: TradingView
The 4-Hour Chart
Looking at the 4-hour timeframe, the price has rebounded from the $2,200 region and is testing the $2,700 resistance level. The RSI has also recovered above the 50% threshold, indicating that the momentum is bullish in this timeframe.
Therefore, if the price breaks through the $2,700 level, the market can rally higher toward the $3,000 resistance zone, and a full recovery could be expected for Ethereum.
Source: TradingView
On-Chain Analysis
By TradingRage
Ethereum Exchange Reserve
With Ethereum’s price experiencing a massive drop, many investors have capitulated and sold their coins at a loss. Yet, a period of accumulation might be beginning as some participants consider ETH to be oversold.
This chart demonstrates the Bitcoin exchange reserve metric, which measures the amount of BTC held in exchange wallets. Increasing values indicate that the investors are depositing their coins to exchanges to sell them, and decreasing values hint at an accumulation phase.
Looking at the chart, the exchange reserve metric has experienced a gradual rise following the recent drop, which points to a capitulation by investors. However, with the market showing signs of recovery, the exchange reserve is once again dropping below its 30-day moving average, which points to an increase in demand. If this trend continues, Ethereum could recover soon.
Source: CryptoQuant
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