Ethereum (ETH) has been struggling to break above the $2,100 resistance level, experiencing a 6% decline over the past week. As the second-largest cryptocurrency continues to trade within a critical range, market analysts believe that it may remain stagnant before making its next significant move.
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After a disappointing first quarter performance, Ethereum has been moving sideways, fluctuating between the $1,775-$1,925 price range. Despite a brief recovery last Monday, Ethereum was only 6% below its monthly opening, hinting at a possible positive monthly close.
However, Ethereum witnessed a sharp 10% drop from its recent high, ending the first quarter 45.4% lower than its January opening and 18.6% down from its March opening. This poor performance marks Ethereum’s worst showing in seven years, with four consecutive months of decline for the first time since 2018.
Daan Crypto Trades noted that ETH remains stuck in a neutral zone despite attempts to break out above its current range. In early March, Ethereum fell below the $2,100 mark, wiping out gains from 2024 and hitting a 16-month low of $1,750.
The trader emphasized the importance of monitoring key levels, such as a breakdown below $1,750 or a breakout above $2,100, as anything in between could result in choppy price action.
Another market observer, Merlijn The Trader, highlighted that Ethereum is currently trading at 2021 levels, within the breakout zone that led to Ethereum’s all-time high. He mentioned that despite the similarities, Ethereum now boasts stronger fundamentals and increased institutional demand compared to four years ago.
## More Chop Before ETH’s Next Move?
Analyst VirtualBacon predicts that Ethereum is likely to continue trading within its current range for the time being. He pointed out that ETH’s price has retraced to test the previous bear market resistance levels, erasing all gains made since November 2023.
While he deems this range as a good value area, VirtualBacon doesn’t anticipate an immediate breakout. However, he believes that a bullish move is inevitable in the longer term.
VirtualBacon also highlighted that Ethereum tends to rally when global liquidity trends upward and the Federal Reserve shifts its stance. This often leads to an uptick in the ETH/BTC ratio, signaling a broader rally in the altcoin market.
Ali Martinez pointed out a significant decline in large ETH transactions over the past month, dropping by 63.8% since February 25. This decrease in whale activity suggests a lack of interest from large investors, with whales selling off 760,000 ETH in the last two weeks.
As of now, Ethereum is trading at $1,903, reflecting a 6% decline over the past week.
Featured Image from Unsplash.com, Chart from TradingView.com
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