Ethereum has been showing solid gains this week. It was able to rise above $3500 and continue to rise. However, the higher the price climbed, the more pressure it felt. The price of Ethereum was able to reach a maximum in the area of $3677, after which it began to show a correction. The ETH/USD pair dropped below the levels of $3600 and $3500. At the time of publication, the ETH/USD pair is trading around $3440.
Thus, the ETH/USD pair broke down the uptrend line on the hourly chart. However, the 100-hour moving average is still holding the price around $3440 from falling further. If the bulls fail to keep the price above 100 MA, we will see a further decline in the Ethereum price around $3380. A move below this level will send the ETH/USD pair to the area of $3345.
If the bulls manage to keep the price above 100 MA, they will try to raise it again above the key level of $3500.
The analyst draws attention to the fact that according to IntoTheBlock, the total number of ETH withdrawn from the exchange has reached a new record level. On Thursday, investors withdrew about $1,2 billion worth of ETH from exchanges. The last time after such a withdrawal of Ethereum, its price increased by 60% within a month. If this scenario will repeat, the price of Ethereum may reach $5000.
It is also worth noting that over 10 million coins have been purchased in the range of $3426-$3536. Thus, the bulls will try their best to keep the price of Ethereum above this range. Therefore, most likely, we are seeing the completion of the correction on the hourly chart and will soon see a new bullish rally.