Analysts Suggest Ethereum to Rebound After Correction to $2,960

Ethereum (ETH) may be ready to rebound after hitting a previous target low of $2,960, according to well-known crypto market analyst Tara.

Ethereum has been one of the victims of the current market correction, falling 23% from its high of $3,726 on April 9 to hit a two-month low of $2,850 on April 13. Despite a slight rebound from the lows, Ethereum remains in a bearish zone with price action volatile as it fights to revisit $3,000.

In an analysis, Tara specifically looked at these price swings and said that bearish pressure could continue, eventually leading to a drop to $2,700, which is closely aligned with a key retracement level. This bearish pressure is expected to materialize as a product of the current correction.

However, in an updated report, Tara confirmed that the correction may be over due to a shift in overall market sentiment. To put it into context, Bitcoin (BTC) recently reached the correction target of $59,700 today and staged an excellent up move with a strong rebound towards $63,000 after the retest.

Ethereum has taken advantage of this uptrend, with a green candle close seen on the 1-hour chart today (UTC). This shift in momentum came as Ethereum retested lows at $2,960, coinciding with Bitcoin’s retest of $59,700.

According to Tara, the $2,960 threshold represents a strong retracement level. It is worth noting that such support areas are often used to fuel rallies. This is the case with Ethereum, which has gained 4.71% in the past seven hours since touching $2,960.

As a result of this bullish turn, Ethereum has once again breached $3,000 in an effort to establish solid support at this psychological level. However, Ethereum encountered severe resistance at the Fibonacci 0.382 level at $3,115, as highlighted by Tara in a previous analysis.

If the bears regain control, Ethereum needs to stay above $2,996 to prevent the price from falling further to the recent lows. This level coincides with support from the upper trendline of the symmetrical triangle that has recently formed on the one-hour time frame.

However, Ethereum’s hourly RSI continued to rise after the decline from the $2,960 price level. The current RSI shows bullish momentum in the short term, but Ethereum needs to break above the 50-day EMA at $3,164 to confirm this bullish trend. This also coincides with the Fib. 0.382 level of $3,115.

At this juncture, data from CryptoQuant confirms a drop in open interest, suggesting that Ethereum may be about to see a trend reversal from bearish to bullish. Furthermore, the funding rate shows that bullish sentiment is dominant, demonstrating how investors are behaving at this time.

Additionally, the Coinbase Premium Index has seen a slight rise in recent times, indicating an increase in demand for Ethereum from U.S. institutional investors. Ethereum is currently trading at $3,083 and is on the road to recovery having gained 3.15% today.

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