As Ethereum (ETH) faces a significant price downturn, with a 17% drop over the past month, analysts are closely watching key resistance levels that could potentially trigger a trend reversal if reclaimed.
Ethereum’s Immediate Future
In a recent update shared by crypto analyst Ali Martinez on social media platform X, two crucial price points have been highlighted for Ethereum’s immediate future. The first level, set at $2,100, is seen as a crucial threshold for initiating a new upward trend. However, the $2,300 mark is considered a more decisive level that Ethereum must surpass to confirm a bullish reversal.
According to Martinez’s analysis, failure to reclaim these levels could lead to further decline. The next targets to watch are $1,600 and $1,155, levels that could signal a new downtrend for Ethereum. This would represent additional losses of 12% and over 37%, respectively, marking a continuation of Ethereum’s challenging first quarter.
Resistance Wall and On-Chain Data
Martinez also pointed out a significant resistance wall between $2,200 and $2,580 for Ethereum’s price. On-chain data from the analytics firm IntoTheBlock reveals that approximately 12.43 million investors have bought about 66.18 million ETH within this price range. A breakout above these levels could potentially generate bullish momentum, although bullish catalysts for such a move remain scarce.
ETH’s Largest Accumulation Zone Under Threat
Market intelligence firm Glassnode has indicated that ETH’s Cost Basis Distribution shows limited support near current prices. Weekly data suggests that addresses with a cost basis around $1,800 have not re-engaged, with many investors reportedly selling at a loss.
On March 28, clusters of approximately 250,000 ETH with cost bases between $2,000 and $2,050 disappeared, indicating higher-cost holders are trying to average down their positions. However, Glassnode suggests that the overall accumulation zone for Ethereum appears limited at current price levels, raising concerns about future stabilization.
The largest accumulation zone below the current market price is at $1,537, where nearly 994,000 ETH was acquired. If the downtrend continues, this level is expected to provide structural support and potentially buffer against further declines.
Ethereum is currently trading at $1,830, down 12% for the week.
In conclusion, as Ethereum navigates through challenging price movements and critical resistance levels, market analysts and investors are closely monitoring these key points to gauge the cryptocurrency’s future trajectory. With uncertainties looming, the path ahead for Ethereum remains uncertain, with potential trend reversals and support levels being closely watched by the market participants.