Ether price pulled back after a relentless run, but lower levels are likely to attract buyers.
Key point:
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Ether shows signs of being overbought, but a shallow pullback suggests the bulls are not hurrying to the exit.
SharpLink Gaming and BitMine Immersion Technologies have been on an Ether (ETH) buying spree to take the mantle of the largest public ETH holder. BitMine claimed the top spot after it reported holding 300,657 ETH on Thursday, but Sharplink overtook it after the latest round of purchases last week, which boosted its holding to 360,807 ETH.
Could ETH buying by public firms boost the price higher? Let’s analyze the charts to find out.
ETH price prediction
ETH turned down from $3,860 on Monday and has broken below the $3,745 support, indicating profit-booking by short-term buyers.
The ETH/USDT pair could dip to the 38.2% Fibonacci retracement level of $3,494. If the price rebounds off $3,494, it signals solid demand at lower levels. The bulls will then again attempt to drive the pair to $4,094.
Contrarily, a break and close below $3,494 could sink the pair to the 50% retracement level of $3,381 and subsequently to the 20-day exponential moving average (EMA) ($3,234). The short-term advantage will tilt in favor of the bears on a break below the 20-day EMA. The pair may then plummet to $2,904.
Related: DOGE price gained 340% the last time this indicator turned bullish
The 20-day EMA on the four-hour chart has flattened out, and the RSI has dipped below the midpoint, indicating a balance between supply and demand. Buyers will have to thrust the price above $3,860 to open the doors for the next leg of the rally to $4,094.
On the contrary, a break and close below the 50-day simple moving average (SMA) suggests that bears are trying to make a comeback. The pair may plunge to $3,477 and later to $3,361.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
