Reasons to Expect Ethereum (ETH) Price to Hit $2,800 in the Short Term

Although Ethereum (ETH) is facing many challenges, its price still has the potential to increase. Currently, ETH is trading at $2,411.

Recently, there have been concerns that ETH could enter a bear market. While this scenario is entirely possible, the following on-chain analysis shows how the coin could avoid a sell-off.

Also Read: How are spot Ethereum ETFs “backfiring”?

Ethereum is getting strong support

Based on In/out of Money Around Price (IOMAP) data, this on-chain data categorizes addresses into profitable, losing, and break- Capital groups. Accordingly, investors in the market have accumulated 52 million ETH at an Medium price of $2,345, and are in profit.

This volume is higher than the buy volume from $2,349 to $2,703. Typically, larger volumes at certain price levels will have a stronger impact on price action. If the volume is more lossy, ETH will face resistance as investors sell to rebalance.

On the other hand, the higher volume in profit as of now, shows strong support, as investors are less likely to sell at lower prices. Based on this, ETH is finding significant support around $2,345, which could help push the price higher and possibly reach $2,800.

Another indicator that reinforces this view is Ethereum's Chaikin Money Flow (CMF) indicator, which measures the balance between accumulation and distribution.

When CMF is rising, it shows that accumulation is overcoming selling pressure. Conversely, when CMF is falling, it shows higher distribution. On the daily chart, CMF has moved into positive territory (greater than zero), indicating increased buying pressure and could help Ethereum recover recent losses, pushing the price higher.

ETH Price Forecast : Demand is Rising Again

On the daily timeframe, Ethereum (ETH) has increased from $2,225 to $2,421, showing a steady uptrend and predicting that the price may continue to increase in the future.

As per the chart below, there is a supply zone around $2,700, which could create selling pressure. However, the $2,400 area is a strong demand zone for ETH, increasing the possibility of a break above resistance at $2,581.

Additionally, if the Sell Wall around $2,744 breaks, it will support ETH ability to push higher. If ETH overcomes these hurdles, its price could reach $2,800 and possibly $2,991.

However, traders should be cautious of potential market volatility. If the overall market turns from bullish to bearish, this forecast may no longer be valid. In that case, the price of ETH could drop to $2,114.

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