- Ethereum trading volume is down 18% in 24 hours.
- The $2,120 resistance is crucial for ETH’s sustained upward move.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has shown remarkable resilience in recent days. Amid increased uncertainty and market fluctuations, ETH showed a bullish bounce, defying the bearish trend that affected several other coins.
In the last 24 hours, ETH is up 4%, recovering from recent losses and attempting to break through the challenging $2,100 resistance level. This positive momentum came after a notable drop where ETH had fallen to around $1,900 the previous week. However, concerns about market stability remain among investors, reflected in an 18% drop in trading volume over the same period.
The current market fluctuations have coincided with a major event in the world of cryptocurrencies: the turmoil on Binance, the largest cryptocurrency exchange. Changpeng Zhao “CZ”, founder and former CEO of Binance, resigned amid legal turmoil. Zhao’s release on $175 million bail came following allegations of violating financial regulations, specifically the Bank Secrecy Act, by allowing U.S. clients to trade on the platform without proper compliance checks.
While market sentiment remains cautious, there is a notable trend among large ETH holders nicknamed “ETH Whales.” These major wallets have steadily increased their ETH holdings over the past year, with a significant increase seen on Tuesday. It indicates growing confidence among big players in Ethereum’s potential.
Ethereum bullish rally soon?
Analysis of Ethereum price movements presents a bullish picture. The daily chart indicates that the 9-day EMA is below the current trading price of $2,012. Despite this, the daily Relative Strength Index (RSI) indicates conditions above the neutral mark, standing at 61.
Ethereum price chart, Source: TradingView
The key resistance levels of $2,120 pose a crucial challenge for Ethereum. If this resistance is not overcome, a new drop could occur. Initial support is expected to be around $2,050, followed by the crucial $2,000 mark. It represents the 50% Fibonacci retracement level of recent swings.
Meanwhile, the main support level stands at $1,980. A break below this crucial support could trigger further downside moves, which could push ETH towards the $1,920 support zone in the near term.
