The road to recovery is not always an easy path, and recovery amidst a volatile cryptocurrency market is not easy, especially when the cryptocurrency is Ethereum, the king of altcoins.
But it turns out that a very good recovery could just as well be on the cards for the altcoin given its current momentum, which has taken ETH towards a critical zone.
Rise of the phoenix from its ashes?
In the last 48 hours, Ethereum has posted green candles, pushing the price up by 16.09%, leaving the coin to trade at $1,984, bringing it closer to $2k, a psychological level that is critical in resuscitating the investors.
Indeed, during the same duration that the price rose, investors sold around 200,000 ETH of their holdings, which amounts to $379.5 million.
Well, ETH holders have been looking to find profitable exit points, which they couldn’t come across in these last few days as Ethereum seems to be recovering from the local low and not rallying.
After Ethereum fell to $1,700 three days ago, it set the lowest level the cryptocurrency had fallen to in nearly a year. Thus, until ETH can close above $2,000, it cannot prepare for the next major support level, which currently stands at $2,447.
Furthermore, as per the Fib retracement tool, this level coincides with the 23.6% mark, which is crucial for Ethereum if it ever plans on reclaiming $3k and $4k.
It would also be a positive trigger for investors who are currently worried about the uncertainty surrounding the altcoin. ETH holders are still hoping that their investment will turn into profits soon and give them some optimism.
The panic, although it isn’t as extensive as one would expect after a 61% drop in price in the span of five months.
Indeed, most Ethereum holders have been holding their ETH tokens since the start of the price decline. Therefore, more than half of all investors are still far from losses.
Put simply, if Ethereum manages to rise to the next crucial level, it could act as a trigger for investors that are yet to see any profits, bringing their presence back into the market.
