Ethereum (ETH) experienced a monumental surge this week, gaining more than $1,000 in just seven days, surpassing price levels that it hadn't achieved in six months.
It remains momentum, but analysts are cautioning as signs of short-term corrections are manifested.
Ethereum enters territory that was over-acquired to $3,600 after pumping
The Ethereum rally began after it emerged from a long-term integration phase of between $2,400 and $2,800. A few weeks within this range, the Bulls ultimately violated the supply zone around $2,800. This led to aggressive purchases, pushing Ethereum prices to the level they last saw in January.
Analyst Michael Van de Poppe highlighted the development in a tweet commenting on the rapid rise.
The pullback is here
The chart accompanying his analysis suggests that the liquidity on the negative side has been cleared, but is now there “Fluidity on the long side that is ready for use.”
This means that traders may try to lock up slow, long entries before starting a pullback. Specifically, the Van de Poppe chart points to a potential fix of about 11.7% from current levels, potentially bringing ETH back to the $3,170 area.
This is probably a demand zone where buyers can re-enter the country before another leg gets high.
Ethereum Daily Chart by Michaël Vande Poppe
Van de Poppe: “Correctomy is healthy”
Van de Poppe emphasized that corrections are not a sign of weakness, but rather a necessary stage to rebuild momentum. He also said Friday and Saturday are usually the crypto market revision dates.
In parallel, he urged market participants to use such dips to place themselves for the next uptrend. Essentially, if projected dips occur, they may present opportunities for strategic accumulation.
Meanwhile, at the time of press, Ethereum still holds the $3,600 level. The continued accumulation of whales and ETFs further supports price action. For context, Ethereum ETF has purchased $1.3 billion worth of ETH over the past two days.
