The price of Ethereum recently broke down to its December lows but has since shown a strong reaction. Currently down about 48% from its peak, ETH presents an attractive discount for spot accumulation.

4-hour time frame analysis

ETHUSD - 4 Hour Time Frame

ETH has closed below a critical support level and the opening price from Tuesday, July 8, 2024. Over the coming hours or days, it will be crucial to observe how ETH reacts to the dark marked area from which it recently bounced.

If the price fails to react and at least touch the red 12 Moving Average (12MA) on the 4-hour timeframe, ETH may decline further toward the 2024 opening price, which previously saw significant demand.

This movement might also indicate the formation of a higher low, signaling a healthy accumulation phase. If market conditions shift, a breakout from the current range could present an excellent opportunity to target either the Weekly Open or the Pivot, which was previously a bottom level.