Ethereum price shows signs of retracement as Ichimoku’s Kijun line flattens, indicating a potential move toward short-term support levels.
The current dip is considered as reaccumulation opportunity by the market analyst MisterSpread at around $3,400 or even at $3,200 without altering the bullish structure of ETH.
Ethereum has somehow managed to sustain its bullish momentum as it trades above the $2,800 to $3,000 levels, despite the 4.27 percent drop in the daily trades.
Ethereum is currently in a short-term correction following a significant push, giving the market a chance to catch its breath. Despite a minor fall, the trend in a whole is stable and positive.
Market Dynamics Suggest Ethereum May Retrace
A recent post by crypto market watcher MisterSpread highlighted the behavior of Ethereum's price in relation to the Ichimoku Kijun line. When the price advances too quickly, the Kijun—often viewed as a market equilibrium line—can act like a gravitational force.
https://twitter.com/MisterSpread/status/1947544221881180599
In his post, MisterSpread explained that the line has flattened on the daily chart. This often signals a cooling period where prices return to the mean. He noted potential support levels at $3,400 and $3,200, adding that any movement toward these zones may create favorable entry conditions for longer-term positions.
Though not guaranteed, such pullbacks are common in upward trends and should not be mistaken for weakness in the asset’s structure.
Pullbacks Viewed as Re-Entry Windows
MisterSpread emphasized that this is not a negative outlook for Ethereum. The market is merely adjusting after a sharp move. He reminded readers that temporary pullbacks give traders who sold at higher levels a new opportunity to buy in.
He also noted that new buyers waiting for better conditions may use this dip to enter. Provided that the price remains above $2,800 to 3,000, the prospects of Ethereum are sure. This price range remains a powerful support level to this uptrend.
Current Price Action Reflects Normal Volatility
Ethereum's price was at $3,640.52, reflecting a daily decrease of 4.27% as of writing. As long as the price is above $2,800 to $3,000, Ethereum's outlook is good. This region is still a very good support level for the present uptrend.
With no signs of long-term structural damage, market participants continue to monitor Ethereum for signs of stability or further reaccumulation near support zones.
