Ether looks strong on the charts and is expected to challenge the $4,094 level, where sellers are expected to step in.
Made a solid comeback on Thursday, but the bulls are struggling to sustain the higher levels. That suggests the bears are selling on rallies. However, a positive sign for the bulls is that they are trying to maintain the price above $116,000.
Glassnode said in a market report that the cost basis of the local top buyers, one week to one month cohort, is around $116,900. Buyers must sustain the BTC price above $116,900 to confirm that “the demand side is regaining control.”
On the other hand, BTC risks entering a deeper correction toward $110,000 if the price maintains below $116,900, the report added.
the price turns down from the downtrend line but rebounds off the neckline, it suggests buying on minor dips. That enhances the prospects of a break above the downtrend line. If that happens, the BTC/USDT pair could retest the $120,000 to $123,218 resistance zone. A close above $123,218 clears the path for a rally to $135,000.
The first sign of weakness will be a break below the 50-day simple moving average (SMA) ($113,111), and the selling could accelerate if the $110,530 support cracks.