Ethereum (ETH) Faces the $3K Test: Downside Correction or a Bounce Back?

• Ethereum is currently trading around the $3K range. 
• The ETH market has seen liquidations worth $59.85M.

With the broader market sentiment still lingering in fear, the mixed signals across the crypto tokens keep the traders on their toes. It triggers both the red and green waves on the price charts. The largest asset, Bitcoin (BTC), has slipped to $90.8K, while Ethereum (ETH), the largest altcoin, is seeking to climb higher and registered a modest 0.52% spike. 

The bearish wind is blowing near ETH, and in the early hours, the asset traded at a low of $3,000. After the brief bullish spike, the price has been pushed to $3,095. If the bulls gained momentum, the price could see more upside, moving into the bullish phase, hitting recent highs. 

Ethereum is currently trading in the $3,032 zone, with its market cap resting at $366 billion. In addition, the daily trading volume has surged by over 27.93%, reaching the $18.91 billion mark. As per Coinglass data, the market has observed a 24-hour liquidation of $59.85 million worth of ETH.

Is Ethereum on the Verge of a Bullish Comeback?

The trading pattern reveals the active downside correction of Ethereum. The bears might pull the price back to the support at $3,022. A failure to hold this range could trigger the emergence of the death cross and eventually send the price to its low below $3,010.

Upon the occurrence of a recovery reversal, the altcoin could rise to find the nearest $3,042 resistance level. A sustained bullish correction might push for the formation of the golden cross, and the potent bulls drive the Ethereum price up toward $3,055 or even higher. 

The ETH/USDT trading pair’s Moving Average Convergence Divergence (MACD) line has briefly dipped below the signal line. It indicates a shift toward bearish momentum, and the current weakness may be uncertain. Moreover, the Chaikin Money Flow (CMF) indicator found at 0.06 suggests mild buying pressure in the Ethereum market. The money is flowing into the asset, but not strongly, hinting at light accumulation. 

The daily Relative Strength Index (RSI) of ETH is at 58.54, which implies a moderate bullish momentum. The asset is far from the overbought zone, so the trend has enough room to move. Besides, Ethereum’s Bull Bear Power (BBP) reading of 22.29 signals strong bullish dominance in the market. Also, it shows that the buyers have a clear advantage and push the momentum upward for further momentum.

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