Ethereum, the second largest cryptocurrency by market cap, reversed a three-day drop at the week’s start following macro concerns, rebounding from a low of $1800 on Feb. 24.
According to Ted Pillows, a crypto analyst, Ethereum retested the $1,750-$1,800 support zone as expected. Now, Ethereum is bouncing back, but it still needs more of a push from the bulls. Pillows indicated that until ETH reclaims the $2,000 level, it is still likely that the entire pump could be retraced.
If this is the case, analysts are looking at key supports below $1,800, above which Ethereum currently trades.
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At the time of writing, ETH was trading up 5.03% in the last 24 hours to $1917, and down 4.82% weekly.
According to Alicharts, below $1,800, the next major support levels for Ethereum based on the URPD indicator are $1,584, $1,238 and $1,089.
Ethereum fundamentals stay positive
According to Santiment, there is a current mild shorting toward Ethereum. And as ETH is continuing to see a bias toward shorting, the cryptocurrency is likely to go on a large run and liquidate many traders as cryptocurrency markets eventually see a reversal.
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There is no guarantee that markets are going to turn bullish imminently. But the price might see a bounce due to short liquidations boosting prices upward.
According to recent SoSovalue data, Ethereum spot ETFs had a total net inflow of $9.2271 million, and Grayscale ETH saw a net inflow of $11.0795 million.
The Ethereum Foundation has begun staking a portion of its treasury, in line with its treasury policy announced last year.
In line with this goal, the Ethereum Foundation made a 2016 ETH deposit. Approximately 70,000 ETH will be staked with rewards directed back to the EF treasury. This step, according to the Ethereum Foundation, helps to secure the Ethereum network and at the same time fund the Ethereum Foundation’s core operations and activities, including protocol R&D, ecosystem development and community grant funding.