Major cryptocurrencies started the week lower as investors remained concerned about the falling price of Bitcoin, seemingly reducing their exposure to the broader market with the expectation of lower prices.
Major cryptocurrencies started the week lower as investors remained concerned about the falling price of Bitcoin, seemingly reducing their exposure to the broader market with the expectation of lower prices.
Ethereum, the second largest cryptocurrency by market value, fell 2.66% in the last 24 hours to $2,408, reflecting the general market trend.
Since peaking at $2,717 on January 12, Ethereum has steadily declined, bringing it into a crucial demand zone that remains decisive for near-term price action.
According Ali, a crypto analyst, ETH is currently in a key demand zone, ranging between $2,388 and $2,460. If this support remains strong, there appears to be a clear path ahead with minimal resistance, offering potential for an upside move.
However, a bearish scenario could develop if ETH fails to hold above this crucial support level. Ali states that if ETH fails to hold this level, a pullback to the next significant support area around $2,000 could occur.
A trip to around $2,000 would mean a 17% drop from the current price of $2,408. The next major support below $2,000 is the 200 daily SMA, which currently sits at $1,923.
A break of this level could open the doors for more losses, possibly towards the $1,800 and $1,700 levels. Meanwhile, the daily 50 SMA level at $2,338 could attempt to reduce losses in the immediate term.
On the other hand, if ETH sees a reversal of its current declines and bounces off the $2,388 and $2,460 support zones, it could resume its uptrend and target the $2,614 level again.
A successful break above this level could pave the way for a rally towards the $2,717 and $2,900 levels, where the coin faces the next hurdles. The ultimate goal of the bulls is to recapture the psychological level of $3,000 last reached in April 2022.