Ethereum [ETH] He just finished his most important week of the year. Unsurprisingly, ETH delivered a bearish performance after the merger hype eased.
On September 18, ETH dropped nearly 20% after briefly topping $1,700. It was priced at $1,431 (Sept 18) on post-merger selling pressure, as well as bearish market conditions during the week.
The pullback broke the support near the $1,430 level as the price was hovering at press time.
The price has already shown some resistance along the same support level for the past 3 days. But could it sum up enough bullish pressure to not only offset selling pressure but also to trigger an upward pivot?
Some ETH metrics are indicating an increased possibility that ETH is heading for a bullish reversal this week. For example, demand is recovering in the derivatives market. Open interest metrics for ETH futures and options have fluctuated, confirming a return in demand.
A similar pivot occurred the last time ETH retested the current support level at the end of August. This observation is likely to improve sentiment in the spot market, a result that should bolster the bullish outlook.
The retest of the support also increased the number of active deposits. As a result, the volume of transactions has also increased in the past three days.
ETH’s increased activity at the current price level somewhat indicates a return of investor confidence after last week’s sell-off. This could be a sign that investors are anticipating a recovery in the coming days.
On-chain ETH metrics indicate that demand is gradually returning to normal. We are likely to see an increase in the amount of buying pressure as more buying pressure returns to the market. Sufficient demand can lead to a significant rise.
Investors should note the volatile nature of the market and its sensitivity to change. This means that the risk of another big sell-off remains active, especially in the event of unfavorable market information in the coming days.
However, it is important to note that on September 19, the ownership of the alternate king changed hands at $1,293 with a decrease of 11.07% in value over the past day.