Ethereum shows signs of bounce back after the massive sell-off.

After a 15.8% drop at the beginning of the month, Ethereum (ETH) is gradually regaining stability and showing notable bounce back signals. The “king of altcoin” has surpassed the phase of strong selling and is currently trading sideways as investors cautiously adjust their strategies, opening up hopes for a new bullish cycle.

Selling pressure decreases, confidence gradually returns

According to data from the net position change indicator on exchanges, the amount of Ethereum withdrawn has significantly decreased in recent days. This trend indicates that investors are limiting their selling activities, while accumulation signals are beginning to emerge, laying the groundwork for a price bounce back.

The continuous decrease in capital flowing out of the exchange is a clear sign that negative sentiment has eased. The market is entering an accumulation phase, which is an important foundation for the price of Ethereum to potentially bounce back in the near future.

Change in Ethereum's net position on the exchange | Source: GlassnodeThe RSI index also recorded improvement as it gradually escaped the oversold zone, approaching the neutral threshold of 50. This reflects the return of buying force and increasing expectations for recovery. If the RSI climbs above 50 and remains stable, investor confidence will be strengthened, driving ETH prices to grow more robustly.

ETH's RSI index | Source: TradingView## Ethereum heads towards a new bullish trend

Currently, Ethereum is trading around $3,631, maintaining stability above the support level of $3,489 after recent fluctuations. Although it is still far from significant resistance levels, with clear bounce back signals, ETH is preparing for a new bullish cycle.

If the price of ETH surpasses the resistance level of $3,802 in the near future, it will mark a strong comeback for the “king of altcoin” and completely reverse the previous negative outlook.

ETH price chart | Source: CoinphotonOverall, with the selling pressure gradually easing, investor sentiment stabilizing, and technical indicators improving, Ethereum is poised for a significant opportunity to recover and break out in the near future.

Mr. Teacher