Ethereum Price Correction Ahead: ETH Set for 6% Pullback, Potential Buying Opportunity at $2,400

• The Ethereum price could see a short-term correction after a notable 30% surge.
• Indicators suggest a potential pullback to the $2,400 level.
• Despite the expected dip, the long-term outlook for Ethereum remains bullish.

Ethereum price eyes a short-term dip to $2,400, with future prospects remaining promising.

Ethereum’s Potential Pullback Explained

After experiencing a robust 30% increase from its recent low of $2,086, Ethereum’s price is showing potential signs of exhaustion. This surge peaked at $2,724, positioning itself within a daily imbalance zone between $2,695 and $2,855. Historically, such imbalances often precede short-term market corrections.

Short-Term Correction Indicators

Current technical indicators suggest that Ethereum could see a retracement to the $2,400 mark. This expected correction may offer an optimal entry point for investors who missed the initial rally. The Relative Strength Index (RSI) on the four-hour chart is also nearing a reset, indicating that the bullish momentum could resume post-correction.

On-Chain Data Supports Bullish Outlook

According to IntoTheBlock’s In/Out of the Money At Price (IOMAP) indicator, a significant support level exists between $2,300 and $2,400. Approximately 1.4 million addresses acquired 50 million ETH within this range, which could lead to increased buying activity if the price dips. Additionally, the Awesome Oscillator has confirmed a buy signal, though it may briefly fall below the zero level during the pullback.

Whale Accumulation and Market Sentiment

Recent data from Santiment indicates that whale investors have accumulated an additional 550,000 ETH over the past week, bolstered further by the approval of a spot Ethereum ETF. This accumulation trend is a strong indicator of market confidence in Ethereum’s long-term performance. Furthermore, the 30-day Market Value to Realized Value (MVRV) ratio is around -10%, a level typically seen as a buying opportunity, signaling that short-term holders may sell to long-term investors.

Conclusion

While a short-term pullback to the $2,400 level may be on the horizon for Ethereum, the longer-term outlook remains optimistic. Market fundamentals and on-chain data support the possibility of a strong recovery post-correction, providing a potentially profitable opportunity for both new and existing investors. Should Ethereum hold the critical $2,000 support level, we could see a renewed rally aiming for the $3,000 milestone.