Ethereum Price Retests 2,550 Dollars as RSI Nears 67

The Ethereum price recovered nearly 6% in 24 hours to reach a low of $2,524 by September 4, but this recovery brought ETH to a zone where it has been unable to break out.

Ethereum Price Rebounds to $2,550

Crypto.news reports that Ethereum (ETHThe price of ETH was around $2,524 when this article was written, an increase of approximately 5.7% in the last 24 hours. After a drop to about $2,370, ETH is now 6.5% higher than its intraday lowest.

Bitcoin was able to reach $81,000 after a crypto rally. US markets moved up after Federal Reserve governor Christopher Waller announced that the Fed could increase interest rates. support keeping interest rates unchanged If inflation continues to decline.

Waller’s comments reduced expectations for a rate increase at the Fed’s Sept. 15–16 meeting. Treasury yields fell and so did the US dollar as traders adjusted interest-rate positions.

The weak US job data contributed to this shift. ADP National Employment Report shows that in August private employers only created 38 000 jobs, which is below what economists estimated at about 47,000. This reading gives rate sensitive assets more time to recover prior to the official US Employment Report.

ETH still hasn’t confirmed a breakout despite its rebound. The price rose to an intraday maximum of about $2,547 and then fell below $2.550. This is the same level that previously stopped any further gains.

Whale transfers increase the supply risk

Lookonchain, a Blockchain Tracker reported The tokens were transferred to centralized exchanges by a large holder who received 167.855 ETH.

In two days, the wallet deposited 70 739 ETH (worth approximately $174 millions at that time) into multiple exchanges. When the transaction was reported, it still held 97.115 Ethereum, worth approximately $237 million.

Transfers alone cannot prove the sale of all tokens. This means the data on the blockchain does not confirm reports that a holder has liquidated their entire position of 167,855 Ethereum.

The transfers nonetheless created a possible source of supply for the market as ETH struggled to stay around $2.550. If the price drops below its support level, continued deposits will put pressure on the recovery.

The US spot Ethereum Exchange-Traded Funds have been another source of interest. These products are available. recorded According to SoSoValue, data from Sep. 3 shows a net flow of $141,39 million.

The technical indicators are in favor of buyers who buy below the resistance.

The chart for ETH/USDT shows that the current price of $2,523.79 is close to the Bollinger Band upper boundary, which stands at $2.544.17. The middle band tracks the moving average of 20 periods and is at $2,444.67.

Ethereum’s relative strength index for the 4-hour period has risen from 66.87 to 50.18, and its RSI Moving Average is at 50.18. The momentum is in favor of buyers. However, the indicator has reached the level 70 that’s associated with an overbought condition.

If the Bollinger Band is close to $2.550, this would support the case for a breakout. Before the psychological $3,000 level, there are two more visible resistance levels near $2600 and $2700.

In the event that $2,550 is not reached then watch out for $2,500. Bollinger Band near the midpoint of $2,445 is the next possible support.

The daily chart gives a better medium-term indication. ETH’s Supertrend is $2,223.45, whereas Chaikin Money Flow is 0.24. CMF values that are positive indicate that there has been a greater buying than selling pressure during the measurement period.

If you lose $2,445 it will weaken your short-term rebound without stopping the daily trend. If the price falls below $2.345, the recent low of $2.370, and the larger $2.300 area, are at risk.

The Liquidation Map puts $2.550 into focus

CoinGlass 24-hour liquidity heatmap reveals one of closest liquid overhead concentrations between about $2,535-$2,550. If the band moves through, leveraged shorts could be forced to close their positions. This would add buying pressure on a breakout.

The strongest nearby downside concentration appears around $2,485–$2,490. Further liquidation bands appear near $2460 and 2400.

The map places ETH in between two pools with similar leveraged exposure. Breaking above $2.550 can trigger a squeeze on shorts, while falling below $2.490 will accelerate the move towards $2.460.

CoinGlass announced approximately $115,000,000 worth of ETH liquidations in the last 24 hours. The open interest was near $34.23billion, which shows that there is still a lot of leveraged positions in the market.

After a breakout, analysts see $3,000

Ted Pillows, Analyst said ETH was rejected again after it tested at $2,550. He claimed that Ethereum could move rapidly towards $3,000 if it closed above the weekly level.

Lucky, another market commentator, also suggested $3,000 as an achievable long-term goal. He cited a break out from a channel descending and the successful retest that was visible in his chart. He predicted a possible 56% increase, but the projection is dependent on ETH retaining a reclaimed pattern structure.

Ethereum is still below $2.550, so neither target can be confirmed. This is the immediate test to determine if the buyers will be able absorb any selling below that level, without letting the price fall under $2.490.

The official August job report, and the inflation data next week could be a determining factor for US traders in deciding whether or not falling Treasury yields will continue to support ETH. Stronger-than-expected data or renewed inflation pressure could restore rate-hike expectations and challenge the rebound.