Ethereum price has been under intense pressure in recent days. The altcoin leader fell below $3,000 and now explores more deeply the forks that were previously considered secondary support.
The latest technical reading indicates a single leverage point on the chart which now determines if this recovery attempt may continue or if the market prepares for a further decline.
Where the real leverage is: $2,830 to $2,835
Ethereum’s price decline in November recently pushed it into a demand zone around $2,680 on November 21, where buyers finally stepped in. produce a 10% rebound move back to $2,970. The RSI trendline, which had been falling for weeks, has now been reclaimed. This change is significant because it indicates that dynamics are no longer deteriorating at the same rate as before.
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Even with this rebound, the cryptocurrency did not completely escape danger. This is based on the technical outlook of a crypto analyst known as Umair Crypto on the social media platform in technical analysis is not the rebound itself but the location of the largest recent whale orders.
Around 4,000 to 5,000 ETH blocks were executed between $2,830 and $2,835. This narrow band has now become the real lever of the market.
As long as the Ethereum price trades above $2,835, these whales are making profits. The psychological impact of this cannot be overstated, as large players generally do not abandon positions above their entry zone.
This is why the price has repeatedly reacted in tight candles around this level, and there is always a possibility of a rebound if Ethereum continues to hold this zone. Momentum will naturally build as trapped shorts unravel and marginalized buyers follow the strength of trading volume and RSI.
The biggest breakdown starts below $2,770
Failure to hold above the leverage zone between $2,830 and $2,835 will lead directly to the second largest leverage at $2,770. If Ethereum were to close below this level, the same whales that supported the rally would instantly become vulnerable. Their positions would move underwater and many of them could be forced to become sellers.
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This area is visible with the groups of red circles visible at the lower points of the short-term chart below. A breakdown below $2,770 would reopen the lower part of the support zone and return Ethereum to its lowest price level since June.
Ethereum is currently trading at $2,908, up 1.5% over the past 24 hours and just a little above the recognized leverage zone between $2,830 and $2,835.
Featured image from iStock, chart from Tradingview.com
