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Ethereum is in a critical period after failing to breach the $2,500 mark on Monday. As the entire crypto market anticipates a possible rally, Ethereum investors are carefully watching for any signs of strength within the network. However, growing concern about a possible deep correction is increasing in the market.
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Key metrics from IntoTheBlock show that if Ethereum breaks below the $2,300 level, significant selling may follow, increasing pressure on the price. This has created a tense atmosphere among traders and investors as they await a clear confirmation that Ethereum can hold firm above this key support level.
As the broader market experiences uncertainty, Ethereum’s performance in the coming days will likely determine its trajectory. Investors are hoping for bullish momentum, but many remain cautious, knowing the risks a drop below $2,300 could create. The next few days will be crucial in shaping Ethereum’s future price action.
Ethereum Price Testing Essential Need
Ethereum is in a critical transition state as its price remains uncertain, moving between two key levels that can lead to significant gains or losses if the trend becomes clear. Currently trading at a strong level, ETH investors and analysts are carefully observing key areas of support and resistance.
Senior analyst and investor Ali recently shared important data from IntoTheBlock on X, highlighting the critical condition of the $2,300 support level for Ethereum. According to the report, about 2.4 million addresses bought about 52.6 million ETH at this level. This makes $2,300 a key demand zone that, if breached, will trigger a wave of selling as investors look to protect their portfolios and cut losses.
If Ethereum holds above this key support, sentiment around ETH could turn more positive. Traders and investors may gain confidence, leading to a potential rally. Ali’s analysis underscores the importance of the coming days in shaping Ethereum’s price action.
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Ethereum’s performance at the $2,300 level will likely determine its short-term future, either as a base for gains or the start of a deeper correction.
Technical Analysis of ETH
Ethereum (ETH) is trading at $2,420, following a 3% retracement from the necessary low near $2,330. Despite the recent recovery, the price remains less than 2% away from the 4-hour moving average (MA) at $2,467 and about 3% away from the 200-month moving average (EMA) at $2,495. These moving averages are important resistance levels for ETH in the short term.
Ethereum should break above 200 MA and EMA and target resistance levels above $2,500 to push the price. A clear break above could open the door to further gains, when investors are looking for signs of continued momentum.
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However, if Ethereum fails to recover both indicators in future sessions, the risk of a deep correction increases. In such a case, ETH may return to the most sought-after areas, possibly dropping to $2,150. Traders and investors are closely watching these levels as Ethereum’s next move will likely determine the near term trend.
Featured image from Dall-E, chart from TradingView