Ethereum has been on a remarkable bull run, surging over 50% in just a week and breaking through key resistance levels at $2,000 and $2,200. However, the rally seems to have hit a temporary pause as ETH faces resistance around the $2,740 mark. This momentary pause comes as no surprise to analysts, who believe that a period of consolidation is necessary before the next leg higher.
One top analyst, Daan, has pointed out that the $2,400 level will be crucial in the coming days. He suggests that a retest of this support level would establish a healthier structure for further upside. Despite the positive outlook, Daan also warns about the excessive Open Interest in the ETH derivatives market. He advises caution and recommends waiting for some of the leverage to be flushed out before considering long positions.
As Ethereum navigates this critical juncture, traders are eagerly watching to see how the price action unfolds. If ETH manages to hold above $2,400, it would confirm the strength of the uptrend and pave the way for further gains. On the other hand, a decisive break below this level could signal a shift in momentum, with the next major support at $2,100.
While short-term risks remain, Daan remains optimistic about Ethereum’s overall trajectory. Even a pullback to $2,100 would still leave ETH up approximately 20% from the previous week. The broader trading range for now is seen between $2,100 and $2,800, with these levels likely to determine Ethereum’s next major trend.
In the midst of this price consolidation, Ethereum continues to attract attention as the broader altcoin market anticipates a potential altseason. Analysts believe that Ethereum’s breakout could serve as a catalyst for a larger move across altcoins that have been lagging behind. As the market awaits Ethereum’s next move, the stage is set for an exciting period of price action and potential opportunities for traders.
In conclusion, Ethereum’s recent surge has put it in the spotlight, with traders closely monitoring key levels and indicators for signs of the next market direction. While short-term fluctuations are expected, the overall bullish sentiment surrounding Ethereum suggests that the rally is far from over. As the crypto market continues to evolve, Ethereum’s performance will be a key factor in shaping the narrative for the weeks to come.