Ethereum analysis shows that it has faced a strong correction after hitting $1,350 last week. ETH is currently trading at $1,057 and it just hit a key support level.
During the fall, the funding rates of the ETH futures markets were highly overleveraged. In some cases, there were long positions holders paying in excess of 0.15% every eight hours to keep their positions open. This extremely high funding rate in the Ethereum futures market showed that buyers were overleveraged.
The cryptocurrency has since corrected, returning to $1,050, though moved as high as $1,130 on Tuesday.
Ethereum Must Hold $700
Well-known crypto-asset analyst Michael Van De Poppe says that Ethereum has touched a level of key interest during the recent correction, holding $900. While ETH remains above that support level, Van De Poppe says that all eyes should be on $700, which is where Ethereum could catch a bid next after the crushing correction:
“#Ethereum has hit the first level of interest here around $900. It’s looking for a new higher low after this higher high, which is natural. Also eyes on the $700 region. If that correction is over, $ETH is ready for $2,000+.”
If Ethereum can hold these key levels, he said, the cryptocurrency is likely to rocket to new all-time highs past $2,000.
Ethereum’s previous all-time high (ATH) is $1,450, set in early January 2018 after the Bitcoin correction seen into the end of 2017.
Macro Trend Still Bullish
Despite short-term trends, other analysts also remain bullish on Ethereum from a macro outlook.
One trader noted that the cryptocurrency is reaching a key level of support from a medium to long-term perspective and thus will likely continue its uptrend:
“Macro structure is looking good and nice recovery so far from this key support region. Now its time to see if this level of previously support will now be flipped into resistance. Pretty vital here that both pairings move higher on LTF.”
There are expectations that Ethereum catches a bid in the coming days because of the vast amount of retail interest in the cryptocurrency.
Just yesterday, it was noted by analysts on Twitter that the search interest in the search term “Ethereum” has hit a new all-time high. At the same time, a PayPal-affiliated exchange has seen an influx in demand for the second-largest crypto.