Ethereum (ETH) price has shed 14% in the past five days and trades today at $2,346. This downtrend has knocked ETH down to a key support zone that could trigger a reversal. Investors can expect decent risk-to-reward. In this article, CoinGape explores potential buying opportunities for Ethereum and a potential rally that could breach $3,000 and revisit $3,500.
Ethereum Price Presents Buying Opportunity
From a technical standpoint, the 14% crash has pushed ETH price deep into the $2,440 to $2,252 demand zone, which is the current support structure. If ETH manages to produce a daily candlestick close above the demand zone’s midpoint of $2,340, it would denote a significant absorption of selling pressure into limit buy orders.
Investors looking to open swing long positions or accumulate ETH ahead of the bullish fourth quarter can do so at the aforementioned levels.
However, this buy signal is not enough for ETH price to achieve the goal. Bitcoin (BTC) needs to halt its correction and stabilize around $61K to $62K levels. Such a development could see Ether and other top altcoins shoot higher.
A bounce from the aforementioned demand zone is not an easy task for bulls due to the following hurdles.
The $2,309 to $2,820 range’s midpoint $2,564 is the first hurdle Ethereum price will face.
Overcoming the said barrier will put ETH in front of the $2,886 to $2,923 resistance levels.
Beyond this lies the $3,000 psychological level and $3,500, both of which are easy to achieve if ETH can conquer $2,800.
ETH/USDT 1-day chart
ETH Price Interests Investors: On-chain Data Hints
Supporting this Ethereum buy signal is the recent uptick in ETH Network Growth since September 21. This metric tracks new addresses joining the Ethereum blockchain. In tandem with the network growth, the daily active addresses have nearly doubled from 350K to 520K in the past two weeks.
Combined, these two on-chain metrics signal that there is a capital inflow and interest from sidelined buyers at the current price levels.
ETH Network Growth
If Ethereum price fails to hold above the demand zone’s lower limit of $2,252, it will signal that the selling pressure is greater than the limit buy orders and could knock ETH down to the next key level of $2,000.
Popular crypto trader and analyst Crypto Capo mentioned that he is expecting Bitcoin to drop 10% to 20%, which could also knock ETH lower. In such a case, the Ethereum price forecast target would be $2,000.
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