- Ethereum faces resistance at $2,520, which is crucial for the bullish momentum.
- Santiment highlights Ethereum’s dominance of +22.4% over Bitcoin in a week.
Ethereum, the second largest cryptocurrency, stands at a crucial crossroads as it grapples with resistance levels and changing market dynamics. Over the past week, ETH has seen a decline of 5%, currently trading at $2,462, a decline of 2.38% in the past 24 hours.
Ethereum’s recent struggles to break above $2,550 and $2,580 reflect the BTC bears’ struggle against negative post-Bitcoin ETF market sentiment. Bears remain active as ETH trades below the $2,500 mark and the 100 hourly simple moving average. Meanwhile, trading volume stood at $11 billion, reflecting a daily increase of 14%.
Notably, Ethereum witnessed an uptrend starting from the second week of January. Ethereum’s notable price increase from $2,170 to $2,714 during this period set it apart from the continued volatility of other altcoins. It is in a bearish trap amid Whale accumulation data from December 2023, suggesting a preference for Ethereum among “smart money” investors.
Basically, on-chain analytics firm Santiment highlights Ethereum’s dominance over Bitcoin, with a significant increase of +22.4% in just one week. The network is experiencing robust growth, averaging 89.4k new ETH addresses per day. The decreasing presence of Ethereum in exchange offerings further supports a positive outlook.
Short-term analysis of ETH
Analysts are closely watching key resistance levels, with the $2,520 mark seen as crucial for potential bullish momentum. A break above this level could pave the way for a rally towards $2,580, followed by major hurdles at $2,620 and $2,680.
ETH price chart, source: TradingView
On the downside, failure to break above $2,520 could trigger further declines, with initial support at $2,440 and a more significant level at $2,425. A breach of the latter could lead to a test of the $2,350 support, potentially marking a deeper correction.
