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ethereum is at a crucial moment after failing to break the $2,500 mark on Monday. With the entire crypto market anticipating a potential rally, ethereum investors are closely watching for any signs of strength within the network. However, growing concerns about a possible deeper correction loom over the market.
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Key metrics from IntoTheBlock indicate that if ethereum falls below the $2,300 level, a significant sell-off could occur, adding pressure to the price. This has created a tense atmosphere among traders and investors as they wait for clear confirmation that ethereum can remain strong above this critical 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, aware of the risks a drop below $2,300 could trigger. The next few days will be critical in shaping ethereum's future price action.
ethereum Price Tests Crucial Demand
ethereum is at a crucial turning point as its price remains indecisive, oscillating between two significant 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 watching key support and resistance areas.
Ali, the leading analyst and investor, recently shared important x.com/ali_charts/status/1844632706895823011″ target=”_blank” rel=”nofollow”>IntoTheBlock data in xhighlighting the critical nature of the $2,300 support level for ethereum. According to the report, around 2.4 million addresses purchased approximately 52.6 million eth at this level. This makes $2,300 a major demand zone that, if breached, could trigger a wave of selling as investors look to protect their portfolios and minimize losses.
If ethereum holds above this critical support, the sentiment around eth could shift towards a more positive outlook. Traders and investors may gain confidence, which will lead to a possible rally. Ali's analysis underlines the importance of the coming days in shaping ethereum 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 as a trigger for deeper corrections.
eth Technical Analysis
ethereum (eth) is trading at $2,420, following a 3% bounce from the lower demand zone of around $2,330. Despite the recent recovery, the price remains within 2% of the 200 4-hour exponential moving average (MA) at $2,467 and around 3% of the 200 EMA at $2,495. These moving averages are critical resistance levels for eth in the short term.
ethereum must surpass 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, with investors looking 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 retreat to areas of lower demand, potentially falling towards $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, TradingView chart
