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Ethereum finds itself at a pivotal moment after failing to breach the $2,500 mark on Monday. As the entire crypto market anticipates a potential rally, Ethereum investors are closely watching for any signs of strength within the network. However, growing concerns about a possible deeper correction are weighing on the market.
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Key metrics from IntoTheBlock indicate that if Ethereum breaks below the $2,300 level, a significant sell-off could ensue, increasing price pressure. This has created a tense atmosphere among traders and investors who are awaiting clear confirmation that Ethereum can hold above this critical support level.
As the market as a whole faces uncertainty, Ethereum’s performance in the coming days will likely determine its trajectory. Investors are hoping for upward momentum, but many remain cautious, aware of the risks that a decline below $2,300 could entail. The next few days will be crucial in shaping the future price action of Ethereum.
Ethereum Price Tests Crucial Demand
Ethereum finds itself at a crucial turning point as its price remains undecided, oscillating between two important levels that could result in substantial gains or losses once the trend becomes clear. Currently trading in a tight range, ETH investors and analysts are carefully observing key support and resistance zones.
Prominent analyst and investor Ali recently shared important data from IntoTheBlock on X, highlighting the critical nature of the $2,300 support level for Ethereum. According to the report, around 2.4 million addresses purchased around 52.6 million ETH at this level. This makes $2,300 a significant demand zone that, if breached, could trigger a wave of selling as investors seek to protect their portfolios and minimize losses.
If Ethereum holds above this critical support, sentiment around ETH could shift toward a more positive outlook. Traders and investors could gain confidence, leading to a potential rally. Ali’s analysis highlights 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 near-term future, either as a basis for gains or a trigger for deeper corrections.
ETH technical analysis
Ethereum (ETH) is trading at $2,420, following a 3% rebound from the lower demand zone around $2,330. Despite the recent rally, price remains less than 2% away from the 4-hour 200 moving average (MA) at $2,467 and around 3% away from the 200 exponential moving average (EMA) at $2,495. These moving averages constitute critical resistance levels for ETH in the near term.
Ethereum needs to break above the 200 MA and EMA and target resistance levels above $2,500 to push the price higher. A clear break above could open the door to further gains as investors look for signs of sustained momentum.
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However, if Ethereum fails to recover both indicators in the coming sessions, the risk of a deeper correction increases. In such a case, ETH could return to areas of lower demand, potentially falling to $2,150. Traders and investors are watching these levels closely, as Ethereum’s next move will likely determine the short-term trend.
Featured image of Dall-E, chart by TradingView
