As Ethereum nears critical support level, THIS hints at potential reversal
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The ETH/USDT pair revealed a cumulative volume delta divergence. Ethereum is likely to bounce from crucial support. Ethereum[ETH], the second-largest cryptocurrency, has become the focus of attention as traders and investors prepare for Q4 2024 amidst widespread market uncertainty. Recent analysis of the ETH/USDT pair revealed a cumulative volume delta (CVD) divergence. As ETH prices make equal highs while CVD forms lower highs, this divergence suggests a potential reversal. CVD divergence typically signals weak buying pressure, implying that Ethereum could see further price changes. Source: Hyblock Capital If the orderbook depth remains constant, ETH might create lower highs, but if the depth increases, higher prices are expected. ETH/USDT at a key support Analyzing Ethereum’s price action revealed that ETH/USDT was at a crucial support level at press time, forming a broadening ascending wedge on higher timeframes. A double bottom pattern may form along the ascending trendline, potentially signaling an upward move. However, a break below this support level could lead to further price declines. On the daily chart, ETH is also shaping a double bottom at the $2,100 mark, a key point for potential recovery. Source: TradingView A rate cut could catalyze Ethereum’s bounce in Q4, following the trend of other cryptocurrencies in recent years. Mega whale address count The mega whale address count, representing holders with over 10K ETH, has steadily declined, indicating weaker confidence from large investors. Whales ceased accumulating ETH in early July, instead they chose to selling or redistributing their holdings. Despite this, the CVD divergence suggests that the correction phase might be ending. However, doubts remain due to the continued decline in mega whale addresses, which could hamper any significant price reversal. Source: Glassnode OI-Weighted Funding Rates Open Interest-Weighted (OI-Weighted) Funding Rates for Ethereum, analyzed using Coinglass, showed rising green numbers, a positive sign for ETH.…
Filed under: News - @ September 10, 2024 1:21 pm