Ethereum ($ETH) has fallen around 5% in the last 24 hours and is now close to $4,270. Analysts consider that this correction might be a decent opportunity to buy; moreover, $4000 and above is a great area to buy on the dip.
The correction is viewed as the initial accumulation zone, where many investors can begin purchasing again.
Technical Outlook Is Bullish for Ethereum
Ethereum’s daily Relative Strength Index (RSI) is now 58, which means the market is neutral to bullish after cooling from overheated levels. This implies that the market has run off part of its overmomentum and retained a good trend structure.
According to analysts, a decrease of Ethereum to the $4,000 price level will be “an extreme opportunity for buyers.”
Although further consolidation may occur, the overall trend remains positive as long as ETH is trading above its key support levels.
Bitcoin Dominance Adds Context
Bitcoin dominance (the value of Bitcoin, divided by the total market value of all cryptocurrencies) has increased to 59.8%.
Traditionally, when Bitcoin’s dominance level exceeds 60 percent, it tends to initiate strong market rallies. Altcoins tend to increase in value if Bitcoin’s dominance drops slightly below 59.5%.
As long as the pressure on the Bitcoin dominance goes on, Ethereum and other altcoins will shift more promisingly against Bitcoin in the near future.
Looking Ahead
To date, the critical question is how Ethereum will maintain a position above the $4,200 point. Traders will also actively seek a retreat in Bitcoin’s dominance. This type of reduction in Bitcoin dominance could potentially precondition the altcoin-based rally.
Even though the short-term uncertainty still exists, certain analysts indicate that price corrections tend to offer the most favorable buying opportunity.
In the months to come, an additional market push towards a test of the all-time high could occur in case Ethereum redevelops the momentum.
