Shhh, it's a secret. Ethereum (ETH) has probably bottomed at $3,000 and hardly anyone is talking about it. With market sentiment at its most dire - the Fear and Greed Index hit 10 on Sunday, deep in extreme fear. Is this now the beginning of a rally to $5,000 and beyond? $ETH price hits $3,000 psychological support level Source: TradingView The short-term time frame for $ETH shows how the price not only tagged the bottom of the descending channel, but it also hit the psychological $3,000 horizontal support level and a decent bounce has resulted so far. It would be expected that the price will now either move on up to the downtrend line (faint dotted line) or it will perhaps come back down, perhaps for another retest, and the very short term momentum indicators can reset. The RSI reveals that the indicator line has broken up through the first downtrend line. In keeping with what was just mentioned, it could go back to retest and confirm this trendline before moving up to the next downtrend line. This could correspond to a similar movement to the trendline in the price action. Bounce here or coming soon Source: TradingView Looking at $ETH in the daily time frame it can be seen that a bounce from the current level makes perfect sense. Yes, there is the possibility of a further dip to the even stronger horizontal support level of $2,800, but institutions would probably be buying into such a drop, given the excellent support below. All this said, $3,000 is a key level and the bounce can certainly take place from here. The descending trendline in the RSI at the bottom of the chart suggests that the bounce is either happening or will arrive soon. As can be noted in the previous almost 6-month long downtrend line, when the indicator line breaks through, this can signal a period of huge price growth. Huge $ETH price rally building Source: TradingView The weekly chart shows what could be a huge, thunderous bull flag, or at the very least a descending channel, the measured move of which would take the price back, near to the all-time high. The measured move for the bull flag could take the $ETH price to somewhere near $7,000. The RSI in this time frame reveals how it has signalled previous big rallies. These have led to price rises of 169%, 82%, and 221%. Taking just the average of these 3 price rises (157%), this would send the $ETH price to well over $7,000. Hold onto your hats! Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
