Ethereum “Failed” Hack – When Will ETH Price Break $3.5K?

• Ethereum price has dropped by more than 3% in the past seven days.
• A key metric revealed that ETH was undervalued, indicating a recovery on the charts.

Ethereum [ETH] The price action turned bullish on June 28, giving investors hope of recovering from their previous losses. Unfortunately, this uptrend did not last long, as the coin posted a price correction shortly after. This caused the weekly and daily charts to flash red.

Ethereum faces rejection

After the aforementioned price spike, ETH stocks surged again, pushing the altcoin’s price down by more than 3%. At the time of writing, the altcoin’s king ETH was trading at $3,391.51 with a market cap of over $407 billion.

The worst news is that Ethereum has been rejected from the upper limit of the rising wedge pattern in the recent past. According to A tweet According to ZAYK Charts, a popular crypto analyst, the price of the token started consolidating within the pattern in late May. A successful breakout could have seen the price rise by 30%, which could have allowed Ethereum to surpass $4,000.

Interestingly, a similar pattern emerged earlier in March, which then exploded in May. This allowed the altcoin to reach $3.89K on the charts. However, given ETH’s rejection this time, the chances of history repeating itself may be slim.

Source: X

ETH will not recover?

Next, AMBCrypto takes a closer look at the current state of Ethereum to see if it will fail to break out of the bullish pattern.

We found that the market sentiment around the altcoin king remained bearish. This was evident in the decline in its weighted sentiment after its June 28 rally. Its network growth also slightly decreased, meaning fewer addresses were created to transfer the token.

Source: Santiment

However, some metrics were in favor of a successful breakout.

For example, the MVRV ratio has improved over the past few days, which can be interpreted as a bullish signal.

AMBCrypto’s evaluation of Glassnode data also revealed that Ethereum’s NVT ratio has declined sharply. A decline in this metric usually means that the asset is undervalued – meaning an upcoming price rise.

Source: Glassnode

AMBCrypto then took a look at Hyblock Capital’s data to look for immediate support and resistance levels.

According to our analysis, it will be necessary for ETH to touch and surpass the $3.5K level in order to sustain the bullish rally as liquidations will rise sharply. In general, higher liquidations often lead to price corrections on the charts.

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On the other hand, if bears continue to dominate and ETH volatility rises southward, it could fall to $3,060.

Source: Hyblock Capital