Ethereum’s (ETH) year-to-date bull run seems to be running out of steam. The price has not really moved this week, and may even close in the red. An opportunity to buy the Dip? Check out this analysis.
Ether (ETH) Advances in Potential Downside
The second crypto by market capitalization underperformed this week. Indeed, in the first and second week of the year, ether (ETH) was up 6.7% and 19% respectively. While this week, it almost closed in the red. Indeed, its price is currently moving close to the middle of the week’s high and low. The bulls are struggling to push the price higher. This leads us to the conclusion that the bull run on Ethereum is running out of steam.
We can therefore envisage a slight decline, or rather a correction, next week. Indeed, the price could make a pull-back on the line of oblique resistance that it had just crossed last week. We could therefore envisage the return of ether (ETH) to the area around $1400. In addition, this level aligns with critical support since July 2022. But not only that, the 200-day moving average is also at this level. However, it could be that the price breaks through this level to reach $1300. This will be the ideal area to take a long position.
A possibility to buy the DIP?
In a bullish market, taking a long position is safest and least risky. As mentioned above, the area around $1300 seems like an interesting entry point. Indeed, it sits just below the critical $1400 support. It could therefore be that ether (ETH) made a false breakout of this support. This, in order to reach the “true support” of $1300. Moreover, this entry point lies between the 78.6% and 61.8% Fibonacci levels. This is a very relevant area, as the price always tends to make a correction up to these fib level.
So this will be an opportunity to buy Ether (ETH) at a DIP value. However, if the price breaks above $1220, it could initiate further declines below $1073.
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