Ethereum price is up 1.22% on Tuesday, November 5, but will it continue to bounce here or crash lower? The upcoming US elections will play a pivotal role in adding volatility to the markets, but the short-term outlook remains uncertain. Regardless, let’s explore if ETH has formed a bottom and will bounce or slide lower, continuing its lackluster performance in 2024.
Analyst Ponders if Ethereum Price Could Bounce?
IncomeSharks, a popular analyst, posted on social media platform X how the OBV or On Balance Volume indicator is showing a consistent uptrend. This outlook is bullish and coincides with the Super Trend indicator that has been serving as support for ETH since October. If this trend continues, Ethereum price could form a bottom and bounce, kickstarting a reversal of the ongoing downtrend.
While IncomeSharks is bullish and expects the value of ETH to reverse, others aren’t bullish. ColdBloodShiller, another popular analyst, aka CBS, posted his Ethereum short setup on social media platform X.
According to CBS, Ethereum price is in a “rancid” spot and could form a “lower high.” He further clarified that his bearish bias is due to the rejection of RSI on the weekly and three-day time frames. Additionally, the trend line that supported Ethereum’s uptrend since September 2024 also breached.
ETH Price Analysis: Ethereum In Precarious Position
Ethereum price consolidation in the past 90 days continues, creating a value area that extends from $2,432 to $2,689. This value area is where 70% of the volume was traded in the past three months. The highest volume traded level sits at $2,620, aka Point of Control (POC).
The downtrend has knocked ETH below the VAL of $2,432, but the recent uptick hints at a potential recovery if it can overcome the aforementioned level. However, due to the upcoming US elections, it is highly unlikely that Ethereum will continue its ascent to the upside. A rejection at $2,432 could trigger a 12% correction to $2,136. A further spike in selling pressure could send ETH to $1,924.
On the other hand, a recovery above $2,432 with a successful flip of $2,432 could open the path toward $2,689.
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