Ethereum, the world’s second-largest cryptocurrency, experienced a historic sell-off last Monday, suffering a 25% decline in a single day. This drastic fall sent shockwaves through the crypto market, causing a stir among investors. Despite this, Ethereum managed to recover swiftly, erasing the losses within hours, which sparked hopes of recovery. However, Ethereum is now trading just under a significant resistance level, leading to concerns about its ability to sustain the upward momentum.
Renowned crypto analyst Daan recently shared a technical analysis indicating that Ethereum is once again acknowledging the $2,800 resistance level but did not manage to breach it on its first attempt. This resistance level has been identified as a crucial point for bulls, as surpassing it is vital for any extended recovery. Daan points out that Ethereum’s future movements heavily depend on this $2,800 mark, which could either rekindle bullish momentum or lead to further consolidation and drops.
With the crypto market still reeling from uncertainty, attention is focused on Ethereum’s ability to recapture this pivotal level. Bulls need to stand their ground to ward off another round of sell-offs, as the upcoming days will likely shape Ethereum’s short-term path and its ability to sustain the recovery.
Currently, Ethereum is trading below the $2,800 mark, gearing up for a decisive move that will determine its short-term direction. The overall sentiment around Ethereum continues to be bearish, with frustrations mounting over its failure to recapture key levels. Hopes for a rally of the second-largest cryptocurrency are fading as the price action continues to disappoint.
Ethereum is presently trading at $2,640 after an unsuccessful attempt to push past the $2,700 mark since last Friday. The bulls seem to have lost momentum, with the price facing solid resistance between $2,700 and $2,800. This critical supply zone has restricted Ethereum’s upward movement, leaving the market in a state of uncertainty.
To regain bullish momentum, Ethereum needs a strong demand at current levels and a breakthrough above this critical resistance zone. Reclaiming these levels as support would be the first step toward reversing the bearish trend that has held the market since late January. Without such a move, Ethereum is exposed to further downside risks.
If Ethereum fails to maintain above $2,600 in the coming days, the price is likely to undergo a deeper correction. Falling below this level could push Ethereum into lower demand zones, testing support around $2,500 or lower. The $2,600 mark is being closely watched by traders and investors as a critical threshold for Ethereum’s next move.
For now, the outlook remains bearish, and the coming days will be critical in determining whether Ethereum can muster the strength to recapture key levels or whether further declines are imminent.
