Ethereum (ETH) Faces a Critical Test, Will It Bounce Back or Fall Further From $3K?

• Ethereum is trading around the $2.5K level
• The market has witnessed liquidations totalling $103.94 million worth of ETH.

The brief 1.66% spike has created a bullish wave in the crypto market, pushing the market cap to $3.33 trillion. With the greed sentiment lingering, all major assets fall into mixed sentiment. The largest altcoin, Ethereum (ETH), has posted a modest gain of over 0.20% in the last 24 hours

Ethereum’s bearish net might block the emergence of bulls in the market. A steady jump above $2.6K could help the recovery faster. In the early hours, ETH has visited its daily low of $2,482. Later, the flash of bulls sent the price toward the high of $2,616.

At the time of writing, Ethereum traded within the $2,562 range, with a market cap of $309 billion. Notably, its daily trading volume has dropped by 1.27%, reaching $24.18 billion. Moreover, the market has witnessed a liquidation of $103.94 million worth of ETH, as per Coinglass data

The altcoin has gained a steady 62.61% over the last thirty days. ETH opened the month trading at $1.5K, and with the bullish support, the price has now touched the $2.6K mark

Can the Bulls Reclaim Control of Ethereum?

Assuming the active bearish momentum of Ethereum continues, it might push down the price toward the $2,505 range. The steady downside price trajectory could further accelerate the drop, and ETH will face more correction and enter the $2.4K zone.

On the upside, if ETH bulls initiate an upward movement, the price might reach the resistance level of $2.6K. Upon breaking this level, it could likely support the bulls and drive the altcoin toward $2,660. Also, the potent bulls may potentially continue the uptrend.

ETH’s Moving Average Convergence Divergence (MACD) line is settled below the signal line, which indicates a bearish crossover. The asset’s recent price movement is weakening and could signal a potential downtrend or continued selling pressure

*ETH chart (Source: TradingView)*In addition, the Chaikin Money Flow (CMF) indicator found at 0.13 suggests that the money is flowing into the asset, typically a bullish sign, with buying pressure in the market.

The Bull Bear Power (BBP) value of 19.59 signals a strong bullish dominance in the market, which can push the prices upward. Besides, the daily relative strength index (RSI) resting at 59.50 points out that the asset is in neutral to slightly bullish territory, with room for further upside.

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