Ethereum Sentiment Index Stays Bullish Despite Corrections — Are Bulls Ready?

NEW DELHI (CoinChapter.com) — Ethereum (ETH) holds gains above major support at $2,000. The current price action is still bullish, and the bulls might soon aim for a fresh increase.

Ethereum Price Dips Turn Attractive

In the past few weeks, Ethereum’s price steadily increased from the $1,500 support zone. The bulls pushed the price above key hurdles, including $2,000, like Bitcoin at $40,000. Finally, the price climbed above the $2,500 resistance before the bears appeared at $2,700.

A multi-week high near $2,715 was formed. Recently, ETH started a downside correction and traded below the $2,500 level. There was a move below the 23.6% Fib retracement level of the upward move from the $1,521 swing low to the $2,715 high.

The last two weekly candles were bearish, but many important support zones are waiting to trigger a strong bullish reaction. More importantly, the price is well above the 50-week simple moving average (blue).

The first major support on the downside is $2,120. It is close to the 50% Fib retracement level of the upward move from the $1,521 swing low to the $2,715 high.

The next major support is near the $2,000 handle, where the bulls could take a strong stand. The main uptrend support seems to be forming near $1,800. A crucial rising channel is forming with support at $1,800 on the weekly chart.

A downside break, a weekly close below the rising channel, and the 50-week simple moving average (blue) might change the trend to bearish in the medium term.

Fresh Increase In ETH Soon?

Conversely, Ethereum price might start a fresh increase from the $2,120-2,000 range. Immediate resistance on the upside is near the $2,400 level. The first major resistance is now forming near the $2,700 or channel trend line.

A weekly close above the $2,700 level could spark a major rally toward the $3,000 resistance zone. Any more gains may send ETH toward the $3,500 resistance zone.

Overall, Ethereum price is correcting gains from $2,700 and approaching key supports, including $2,120 and $2,000. If the bulls remain active above $1,800, ETH might start a fresh increase toward $2,700 or even $3,500 in the coming weeks.