Evaluation of Ethereum's Value: Is a 'Beneficial' Adjustment on the Horizon for ETH?

Ethereum is wrestling to reclaim its vital 200-day moving average of $2.7K, forming a potentially bearish double-top pattern. This suggests a possible short-term correction towards the $2.2K support zone. This correction could attract new demand, providing momentum for a breakout above the $2.7K resistance.

On a lower timeframe, Ethereum's weakening bullish momentum is shown in an ascending wedge, signaling diminishing buyer strength and increased seller influence. Onchain analysis indicates that Ethereum stays below a crucial resistance range. However, recent data from the futures market indicates a trend of aggressive selling, suggesting that bears are gaining control.

If this selling continues, a deeper correction towards the $2.2K support could occur. If, however, this selling is driven by short-term traders, it could signify a healthy consolidation phase preceding a larger bullish breakout.