Ethereum (ETH) price has recently experienced a 13% decline, dipping towards the end of September. However, it is currently holding strong above its bear market support floor, suggesting that the cryptocurrency may be poised for a recovery.
Ethereum’s long-term holders (LTHs) are showing renewed strength, as indicated by the Liveliness metric. This indicator tracks LTHs' behavior, declining when they accumulate and increasing when they liquidate their holdings. Currently, the LTHs are in accumulation mode, a positive sign for Ethereum’s price trajectory.
As more holders choose to HODL, the potential for a bullish breakout increases, signaling long-term confidence in the cryptocurrency. This stability could serve as the foundation Ethereum needs to break through its current resistance levels.
From a technical perspective, Ethereum is also showing signs of macro-bullish momentum. The Relative Strength Index (RSI) has been trending positively since early August, hovering near the neutral line at 50.0. Once this line is flipped into support, Ethereum’s bullish momentum will likely gain further strength, pushing prices higher.
Ethereum is currently trading at $2,431, holding above the critical 23.6% Fibonacci Retracement level at $2,401, also known as the bear market support floor. As long as ETH remains above this level, it is likely to continue consolidating while awaiting a bullish trigger that could drive its price higher.
Should the anticipated bullish signals arrive, Ethereum could surge towards $2,591. This level coincides with the 38.2% Fibonacci line, and flipping it into support could allow ETH to rise towards $2,745. Notably, this price point has remained unbreached for the past six weeks, making it a key target for Ethereum’s next breakout.
However, if Ethereum fails to gather enough momentum to surpass $2,591, the price may consolidate within this range, remaining above $2,401. This lack of movement would invalidate the bullish outlook, leading to a prolonged period of sideways trading.
