Ethereum Price Plunges 6% – Will the Bulls Regain Control and Rally Above $4,000?

Highlights:

• Ethereum price plunges 6% to trade at $3,722 as trading volume soars, suggesting heightened market activity. 
• On-chain metrics data indicates that Ethereum’s price correction may be needed, paving the way for a more sustainable rally.
• Traders interested in holding long positions in ETH may do so assuredly by the golden cross pattern as a bullish gesture.

The Ethereum price is no exception, as the crypto market swims in a blood bath today, with ETH/USD plunging 6% to trade at 3,722. Despite the fall, its daily trading volume has skyrocketed almost 120% to 65.45 billion, showing heightened market activity that could trigger a rally in the coming days. ETH boasts a 3% increase over the past week, 15% monthly, and a whopping 56% yearly. 

Meanwhile, according to on-chain metrics data, Ethereum’s funding rates, reflecting future market sentiment, have reached their highest level in months, coinciding with a significant price rally. 

This surge underlines strong bullish sentiment, with traders anticipating new all-time highs. However, a correction may be necessary to sustain this momentum. The spike in funding rates signals the need for a short-term correction, paving the way for a more sustainable price rally. 

Ethereum Statistical Data

Based on CoinmarketCap data:

• ETH price now – $3,722
• Trading volume (24h) – $65.45 billion
• Market cap – $447.92 billion
• Total supply – 120.44 million
• Circulating supply – 120.44 million
• ETH ranking – #2

The Ethereum price recently rallied, forming a rounding bottom pattern, as it broke through the $4,000 mark. However, with the waning crypto market, the ETH price slightly retraced to $3,722. However, the overall trend remains bullish as the altcoin trades above all the moving averages. 

The Golden Cross In the ETH Market Affirms a Long-term Bullish Grip

Meanwhile, the ETH price trades above the 50-day Simple Moving Average (SMA) (green) and the 200-day SMA (blue), turning them into immediate support levels at $3,138 and $3,002, respectively. A golden cross pattern on the same daily chart affirms the bullish grip. This pattern appears when a short-term moving average, like the 50-day SMA, moves above a long-term moving average, like the 200-day SMA.

This means that traders interested in holding long positions in ETH and possibly desire to seek more exposure to the token may do so assured that the golden cross pattern is a bullish gesture.

Although not currently overbought according to the position of the Relative Strength Index (RSI), ETH may need a catalyst to keep the uptrend intact. Holding the above moving averages might encourage investors not to sell for short-term profiteering but to focus on the potential gains targeting $4,000 and $4,500, respectively. 

On the other hand, the Moving Average Convergence Divergence (MACD) indicator introduces a new bearish outlook in the ETH Market. A sell signal manifested when the blue MACD line flipped below the orange signal line, revealing that declines should be expected before the Ethereum price rebounds above the $4,000 mark. This impending correction could gain momentum if the MACD continues to drop toward the neutral zone (0.00) and later into the negative region.

Ethereum Price Poised for a Rally Above the $4,000 Mark

The Ethereum price analysis shows that ETH is currently on a slight retracement but shows signs of a rebound, which could push the token above the $4,000 mark. With the Golden Cross cementing its bullish grip in the market, ETH price is poised for a long-term rally which could hit the $4,500 level. 

However, if the bears exert pressure to push ETH bolstered by the falling RSI and a sell signal from the MACD, the bulls could retreat to the next support level, around $3,546.