Ethereum rebounded briefly from its critical support area, but the bears resumed their attack. The second crypto by market capitalization is back in an area that must be defended to prevent further losses.
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At the time of writing, Ethereum (ETH) is trading at $2,840 with a loss of 3% in the last 24 hours.
The general trend in the market has been towards the negative as Bitcoin, Ethereum and the larger cryptocurrencies are facing further declines. However, some experts offer hope to the bulls as long as the cryptocurrency market can maintain its current levels.
A pseudonymous trader referred to the current ETH price structure and decided that it could go higher from its current price. The trader looked at the trading volume on the Ethereum balance (OBV) and said it was “alive.”
As seen below, this metric has been moving sideways since the beginning of April despite the ETH price action. In this sense, the merchant She said The bullish bias remains as long as OBV is able to maintain these levels.
Ethereum has made higher highs and lower highs during 2022 and appears to be preparing for a rebound to the previous level above $3,000, as the above chart shows. The pseudonym said:
You might think that I am still biased to the upside but I can’t describe this chart as bearish yet. OBV held support throughout the day, and we still made a higher low. One of those broke and I lost my bullish hypothesis.
In the past, these long periods of consolidation in the price of Ethereum and OBV were followed by significant spikes. In May and June of last year, the price of the big cryptocurrency trended lower and then moved sideways before returning to uncharted territory.
Should you sell Ethereum at its current levels?
The crypto market is moving, as indicated by several operators across social media platforms, along with traditional stocks. These assets are reacting to a negative earnings season for big companies and the possibility of a strong shift in monetary policy from the US Federal Reserve (FED).
The Nasdaq 100 index, which is closely related to Ethereum and the crypto market, has shown weakness as it heads further lower in 2022. As long as this index remains in a downtrend, crypto is unlikely to regain strength.
Related reading | Will Ethereum Skyrocket Merge ETH?
However, the current levels could act as a short-term bottom for ETH and BTC prices. The pseudonymous trader said the following about the current price action and its ability to rebound higher:
“Selling major support is one of the biggest mistakes traders make.” Look what happened the last time people were selling bitcoin. At least wait for the support to break if you want to sell.