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Is it an appropriate time to buy Ethereum?
Over the past several months, Ethereum has experienced a consistent and structured downtrend, during which sellers have pushed the price down to a recorded low of $1,743.38.
From a fundamental perspective, significant activity from reputable financial institutions has been observed, involving large-scale purchases of Ethereum and the subsequent locking of these holdings within the network to generate continuous yield. This behavior has contributed to increased demand among Ethereum investors and has acted as a factor preventing further sharp price declines.
In other words, the reduction of Ethereum supply on exchanges, combined with the long-term holding perspective adopted by many Ethereum supporters, has effectively created a form of fundamental support for this digital asset.
On higher timeframes, such as the weekly chart, the price decline has slowed after reaching the key $1,800 level, where further downward movement has been halted. Additionally, the formation of a spinning-top candlestick pattern provides the first indication of potential weakening in the bearish trend.
On shorter timeframes, such as the daily chart, the market is currently in a range-bound condition, fluctuating between the $1,800 support level and the $2,090 resistance level.
In the bullish scenario, due to the price being in an oversold condition and the presence of a bullish divergence with the RSI indicator on the daily timeframe, as long as the key $1,800 support level remains intact, the price has the potential to move upward toward the first resistance level at $2,090, and subsequently toward $2,350.
Conversely, in the bearish scenario, if the $1,800 support level is broken, expectations for a bullish recovery would weaken, and the price could potentially decline toward the $1,600 support zone.
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