Ethereum Price Under $2,000 Eyes Rally As Major Bullish Signal Appears After 2 Years

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Ethereum (ETH) has seen a significant decline in price, falling from $2,800 to around $1,900 in recent weeks. This drop has triggered a major bearish signal, the first of its kind in two years.

However, the current price action may also suggest that recovery could be on the horizon.

Ethereum Has A Shot At Recovery

Ethereum’s price recently fell below the Realized Price for the first time in two years, a development that has sparked concern among some investors. This drop has caused the Market Value to Realized Value (MVRV) ratio to decline, indicating that investors are facing approximately 7% losses.

While this may appear bearish at first glance, it actually presents a potential bullish signal. The previous time Ethereum faced this situation, the altcoin rebounded strongly, and the MVRV ratio improved as the price recovered. This pattern has given some market participants hope that the current situation may lead to a similar recovery.

On the macro level, Ethereum’s overall momentum is showing signs of improvement despite the recent downturn. The Exchange Net Position Change, which tracks the flow of ETH into and out of exchanges, has been declining.

This indicates that investors are accumulating Ethereum rather than selling it, which is a positive sign. Investors see the current low prices as an opportunity to buy, anticipating a future price increase.

This shift in investor behavior is reflected in the purchase of 138,000 ETH worth approximately $262 million this week. The inflow of capital into Ethereum supports the idea that many investors are positioning themselves for a rebound.

ETH Price Eyes A Rally

Ethereum is currently trading at $1,897, down 32% over the last two weeks. The altcoin is holding above the support level of $1,862, which could act as a foundation for a potential bounceback. If Ethereum maintains this level, it may find its way to higher prices in the coming weeks.

For Ethereum to confirm a recovery, it must breach and flip $2,141 into support. This level is critical for ETH to move toward $2,344 and secure a more sustained upward movement. The factors discussed, including the RSI recovery and investor accumulation, are likely to contribute to Ethereum’s ability to reach this target.

However, if broader market conditions worsen, Ethereum could fall below the $1,862 support, pushing the price to $1,745 or even $1,625. A drop to these levels would invalidate the bullish outlook and suggest further downside potential.

The post Ethereum Price Under $2,000 Eyes Rally As Major Bullish Signal Appears After 2 Years appeared first on BeInCrypto.

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