The crypto market downturn has affected the Ethereum price significantly, dropping to a multi-month low of $1779.5. Although the altcoin has recovered significantly since then, the possibility of further decline still exists as the tokens near a critical resistance zone. At the same, it also opens the potential for the breakout above $2,610.
Ethereum Price Overcomes Massive Downtrend
Ethereum currently trades at $1,912.04 with market capitalization and trading volume of $230.61B and $26.3B, respectively. With a minor surge, ETH shows renewed investor interest amid broader market recovery.
However, the market’s volatility is still in action, putting downtrend pressure on the token amid the whale liquidations.
With this, it is approaching a critical resistance zone between $2,248.27 and $2,610.35, with a significant 12.28 million addresses holding approximately 65.24 million ETH. More importantly, this is the crucial junction. Here, 70.42% of the Ethereum holders (100.97M ETH) are under a loss, while only 27.65% are managing profits.
However, the concerning part is the 1.95% holders, who are at break-even points and may sell their tokens to recover loss, creating pressure on the altcoin. This could result in a further downtrend or a potential crash amid high selling pressure.
Ethereum Price Prediction: Is $3000 Possible?
Although Ethereum is maintaining its demand in the market, the $2,610 resistance has become its biggest barrier. The failure to break out of this level keeps the token in the consolatory phase despite building institutional interest and broader market recovery.
However, in contrast, if the ETH price breaks above $2,610, it would generate a strong bullish breakout, as the resistances above this are relatively weaker. With that, ETH can potentially target $2,750 or even $3,000 in the coming weeks.
However, failing to break this key resistance could result in the continuity of the current consolidation.
Key Technical Levels to Watch
Although the trajectory of the ETH is uncertain amid market volatility and upcoming CPI data, a better analysis can be made considering the key technical indicators. The primary resistance is $2,610, and the next is $2,750.
It could reach higher levels if the token breaks through the $2,610 level with investor demand and strong volume. Interestingly, this may happen amid the Ethereum ETF speculation, deflationary mechanism, and favorable CPI data outcome could favor this rally.
However, the failure could push it down, as the Ethereum price analysis reveals key support at $1,500. A downtrend below this could result in the price reaching $1,250 and lower. Interestingly, experts believe the Ethereum Foundation has a longed $182,000,000 position, which would get liquidated if the value crashed to $1,127. This would also negatively affect the ETH price.
Will Ethereum Break Through $2,610?
As Ethereum sits at a crucial level, both bullish and bearish scenarios are open. A decisive breakout above $2,610 could lead to a rally towards $2,750 and $3,000, especially if CPI data is favorable and whale accumulation resumes.
However, the Ethereum price prediction reveals that the rejection at resistance and increase in whale liquidation could bring it down. Investors must keep an eye on key resistance and support levels before jumping into trade.
Frequently Asked Questions (FAQs)
Ethereum currently trades at $1912.04 with a market capitalization of $230.61 billion and a trading volume of $26.3 billion.
Ethereum faces a critical resistance zone between $2,248.27 and $2,610.35, which could determine its next price movement.
Ethereum’s success in breaking the $2,610 limit may push it towards $3,000. However, the failure could result in continuity of consolidation.
Pooja Khardia
With a deep-seated passion for reading and five years of experience in content writing, Pooja is now focused on crafting trending content about cryptocurrency market.
As a dedicated crypto journalist, Pooja is constantly seeking out trending topics and informative statistics to create compelling pieces for crypto enthusiasts. Staying abreast of the latest trends and advancements in the field is an integral part of her daily routine, fueling a commitment to delivering timely and insightful coverage
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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