Ethereum confronted its most intense selling pressure ever recorded last Monday, as the price tumbled 25% in just one day. This significant decline unsettled the entire market, leaving investors anxious. However, Ethereum swiftly recovered, rectifying the entire drop within hours, generating optimism for a rebound. Despite the quick recovery, Ethereum now encounters considerable risks as it trades just beneath a pivotal resistance level, raising doubts about its capacity to sustain upward momentum.
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Prominent crypto analyst Daan presented a technical assessment indicating that Ethereum is again respecting the $2,800 threshold, but failed to break through during its initial attempt. This resistance level has become a key point for bulls, as recovering it is vital for any enduring comeback. Daan notes that the $2,800 mark is significant in influencing Ethereum’s forthcoming actions, with the chance to either rekindle bullish momentum or result in additional consolidation and declines.
Amid the market’s lingering uncertainty, all attention is directed towards Ethereum’s ability to reclaim this pivotal level. Bulls must remain steadfast to avert another wave of selling pressure, as the upcoming days will likely influence the cryptocurrency’s short-term path and ascertain if it can maintain its recovery.
Ethereum Prepares For Decisive Move Below $2,800
Ethereum is currently trading beneath the $2,800 threshold, seemingly preparing for a decisive movement that will dictate its short-term direction. Investor sentiment regarding Ethereum continues to be negative, with many expressing frustration over its failure to reclaim critical levels. Optimism for a rally involving the second-largest cryptocurrency is dwindling as the price movement continues to disappoint.
Daan posted a technical assessment on X, emphasizing Ethereum’s frequent failure to breach the $2,800 resistance barrier. “ETH is recognizing the $2.8K level as resistance once more and did not succeed in pushing through during the first test back up there,” stated Daan.
The current price behavior places Ethereum in a sort of “no man’s land,” making it crucial to identify where a higher low may be created. This higher low could act as a base for either a range-bound movement or a potential breakout.
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Daan proposes that from this juncture, Ethereum might establish a range, which will assist in evaluating its next actions. The impending days will be vital for Ethereum as traders and investors scrutinize whether the cryptocurrency can form support at lower levels or initiate a breakout above $2,800. Failing to reclaim this significant level might prolong the bearish trend and lead to further declines, while a successful breakout could ignite renewed bullish momentum.
Price Struggles Below Key Resistance Levels
Ethereum is presently trading at $2,640 after failing to rise above the $2,700 level since Friday. Bulls seem to have lost traction, with the price encountering robust resistance between $2,700 and $2,800. This critical supply zone has hindered Ethereum’s upward movement, leaving the market in a state of uncertainty.
To regain bullish momentum, Ethereum must identify strong demand at the current levels and surpass this significant resistance zone. Reclaiming these levels as support would be the initial step toward reversing the bearish trend that has dominated the market since late January. Without such a move, Ethereum remains susceptible to further downside threats.
Should Ethereum fail to maintain above $2,600 in the forthcoming days, the price is likely to undergo a deeper correction. A move below this mark could drive ETH into lower demand zones, testing supports around $2,500 or below. Traders and investors will be watching the $2,600 level carefully as a crucial threshold for Ethereum’s subsequent move.
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At present, the outlook remains negative, and the next few days will be vital in deciding whether Ethereum can gather the strength to reclaim key levels or if further declines are imminent.
Featured image from Dall-E, chart from TradingView