Ethereum (ETH) price has bottomed out after sharp losses earlier this week. Traders are waiting for a break above $3,200 to confirm a strong uptrend. ETH price is trading at $3,091 at the time of writing, according to CoinGecko data.
On-chain data is bullish for ETH, according to analysis from on-chain analytics platform Santiment. According to the data, this development points to a strong rally approaching as the ratio of on-chain trading volume in profit and loss shows panic selling at the bottom.
Santiment, “Ethereum on-chain trading volume in P/L data is in bullish territory after three days of capitulation.” says. Besides, ETH is pointing to a strong uptrend approaching as the price stabilizes above the $3,100 level.
“Ethereum has soared above $3,100 after bottoming out at $2,960 to start the week. Volume on On-Chain P/L has revealed that ETH traders are bottoming out, a solid sign of an impending bounce.”
Therefore, the on-chain data shows a strong bullish bias above the $3,100 level. Ethereum (ETH) price action is also showing a recovery from the $2,950 level. Additionally, the price continues to move upwards in the ascending channel and is holding above $3,000.
The next level of resistance is $3,188, but a confirmation above $3,200 is likely to set a strong move in the coming days. Moreover, a retest of the ascending triangle pattern confirms the recovery as ETH forms a new support level at $3,030, as previously reported. Thus, a strong trend can be expected in the coming days until ETH breaks the newly formed support level.
Meanwhile, Ethereum core developer Tim Beiko has announced that the merging of Beacon Chain with the Ethereum mainnet is scheduled after July this year. However, the reason for the delay is not yet clear as the team has successfully tested the "shadow fork".