The ongoing recovery trend in the Ethereum coin witnessed a major road at the $4080 level, resulting in an immediate price reversal in the daily chart. Within three days, the ETH price plunged 10% to its current trade at $3666. However, this pullback falling under the safety net of the Fibonacci retracement level indicates the top altcoin is poised for further growth.

Also Read: Crypto Market Selloff: Top Reasons Why Bitcoin, ETH, XRP, ADA, SHIB Crash Today

Why Ethereum’s Long-term Growth Unhindered by Market Pullback

Ethereum Price| Tradingview

Since late January, the second-largest cryptocurrency Ethereum has been under aggressive recovery evidenced by a parabolic growth in the daily chart. This upsurge witnessed a rally from $2166 to two years high of $4087 recording 88.6% growth.

The crypto analytics platform Santiment has reported a substantial decrease in Ethereum’s transaction fees, despite the cryptocurrency’s price crossing the $4,000 threshold. Current fees average at $9.35, significantly lower than the $62.85 seen during November 2021’s price peak. 

This reduction is largely due to the Ethereum 2.0 upgrade, which has enhanced network efficiency. The sustained lower fees may encourage wider ETH adoption and more diverse use cases.

Unlike the previous time that #Ethereum crossed above a $4K market value (October & November, 2021), the network is less than 1/6th as cheap per transaction today. With gas fees at a modest $9.35 in gas fees, on average, this can be partly attributed to the improved network… pic.twitter.com/bXWmmrqX3L

— Santiment (@santimentfeed) March 14, 2024

However, the Bitcoin price dropped below the $70000 mark, and the altcoin market witnessed notable supply pressure including Ethereum. However, considering the massive rally in the past two months, a minor pullback is beneficial for buyers to regain strength for the higher rally.

Also Read: Ethereum (ETH) Price Drops 7.8% A Day After Dencun Upgrade, What’s the Next Support?

Fibonacci Tool Guides Support Levels in Market Correction

With an intraday fall of 5.3%, the Ethereum price is seeking support at the combined support of $3600 and 23.6% Fibonacci retracement level. Considering the length of a notable price movement this tool is used to identify potential levels of support and resistance by drawing horizontal lines at the key Fibonacci ratios.

Thus, if the correction trend extends, the coin holders must witness sufficient demand pressure at $3350 and $3124, coinciding with 38.2% and 50% FIB levels.

Technical Indicator

Exponential Moving Average: The fast-moving 20-day EMA provides an additional pullback amid market correction.
Average Directional Index: The daily ADX, currently at a steep 66%, indicates that Ethereum could benefit from a slight retracement to sustain its bullish momentum.

The post Key Levels To Focus As Ethereum Price Enters New Correction appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am