After a robust surge that propelled Ethereum to a peak of $2,730, the asset has now retraced by more than 10%, testing crucial support levels as the market takes a breather. This correction follows a period of intense buying pressure and mounting expectations of a broader altseason. However, the recent pullback has sparked discussions among analysts and traders, with sentiment divided between those anticipating another upward move and others bracing for a deeper correction.
Some view this pause as a necessary breather before Ethereum resumes its upward trajectory. On the other hand, some speculate that ETH might revisit lower levels, especially if Bitcoin remains range-bound. Renowned analyst Daan has pointed out the ETH/BTC pair, noting that Ethereum is currently encountering resistance around the 0.026 BTC mark.
With Ethereum still trading well below its all-time high and stuck in a wide-ranging pattern, the upcoming days could be pivotal. Whether this dip is merely a temporary cooldown or the beginning of a more significant correction, Ethereum’s current price levels will likely determine the momentum heading into the next phase of the market.
Ethereum Holds Critical Support As ETH/BTC Pair Faces Key Resistance
Despite recent volatility, Ethereum has displayed resilience, holding above the $2,400 mark. This level now serves as a crucial support zone that bulls must defend to sustain the broader bullish trend. While the price action has cooled off following the spike to $2,730, ETH remains one of the stronger performers in the market, demonstrating strength amidst heightened uncertainty and speculative activity.
Much of the optimism surrounding Ethereum hinges on its performance relative to Bitcoin. Analysts believe that if ETH continues to outperform BTC, it could catalyze the much-anticipated altseason, where altcoins outshine Bitcoin significantly. Daan has shed light on this dynamic, emphasizing the strength of the ETH/BTC ratio in recent trading sessions.
According to Daan, Ethereum has encountered resistance near the 0.026 level after a significant rally. To sustain bullish momentum, ETH must maintain levels above 0.0224. A breach below this critical support level could trigger a gradual decline, potentially unwinding the recent gains. Conversely, a clear breakout above 0.026 could pave the way for a move towards 0.03 and beyond.
In essence, Ethereum’s short-term trajectory will likely be influenced by its ability to hold above $2,400 and exhibit strength against Bitcoin. Meeting these conditions could bolster the case for a prolonged altcoin rally.
ETH Pulls Back Into Support After Failing To Break $2,700
Currently trading at $2,485, Ethereum has retraced from its recent peak near $2,730, failing to sustain levels above the 200-day simple moving average (SMA) at $2,701, a strong resistance barrier. Following days of upward momentum, this rejection has pushed the price towards the 200-day exponential moving average (EMA) around $2,438, now serving as immediate support.
Despite the setback, Ethereum is still trading comfortably above its breakout zone from early May, where it surged from under $2,000. If bulls can defend the EMA and keep the price above $2,400, this could establish a higher low and set the stage for another attempt at reclaiming the $2,700–$2,800 range.
However, a breach below the $2,400 level could shift momentum in favor of the bears, potentially triggering a more substantial correction. Ethereum is currently in a consolidation phase within a larger bullish framework, and the upcoming daily closes will be crucial in confirming whether the pullback is a healthy retracement or a signal of deeper weakness.
In conclusion, Ethereum’s recent price action reflects a market in flux, with traders closely monitoring key support and resistance levels to gauge the asset’s next move. As the crypto landscape continues to evolve, Ethereum’s performance against Bitcoin will be a key determinant of its future trajectory.
Featured image from Dall-E, chart from TradingView