Ethereum Risks Fall to $2,180 as Key Support Zone is Breached
Amid the market retrace, Ethereum (ETH) has lost its key $2,600 support zone and fallen below the next crucial level. As the second-largest cryptocurrency by market capitalization attempts to hold its current range, some analysts predict a 6% drop could be coming.
Ethereum’s Price Falls Below Key Support
Following the $1.5 billion hack of crypto exchange Bybit, the crypto industry experienced a market correction that sent most cryptocurrencies below their key support levels. Bitcoin’s price fell below the $90,000 mark for the first time since November. Meanwhile, Solana, one of the leading Altcoins of the cycle, dropped 30% in five days, hitting a five-month low. Nonetheless, Ethereum’s price held relatively well compared to most cryptocurrencies despite accounting for $1.2 billion of the assets stolen in the hack.
The "King of Altcoins" initially dropped 10%, staying around its pre-Bybit hack levels over the weekend, but failed to sustain the $2,600 support after the market crash resumed on Monday.
Analysts Weigh In
Crypto analyst Ali Martinez had previously warned that this level was key for cryptocurrency’s bullish trend continuation, and failing to hold this support zone would send the price to the $2,400 mark. After the drop, Martinez stated that the $2,425 level was Ethereum’s next most critical support zone, as 10.33 million wallets accumulated 63.43 million ETH. However, the cryptocurrency failed to hold this level on Wednesday, dropping to $2,300 in the past 24 hours.
Martinez warned that Ethereum needs to hold the $2,345 support level now, where 2 million investors bought 58.88 million ETH. If it falls below this level, the millions of investors will be in the red numbers.
Analyst Carl Runefelt also cautioned about ETH’s current levels, suggesting that Ethereum risked dropping another 6%. The analyst advised investors to monitor the bearish flag forming in Ethereum’s hourly chart for the past day, as it could send ETH’s price near the $2,000 support line.
If the cryptocurrency fails to hold the $2,320-$2,330 level, Ethereum’s price targets a breakdown to $2,180.
Short-Term Rally or Sideways Move Coming?
Crypto analyst Ted Pillows highlighted ETH’s bullish divergence in the 3-hour chart, suggesting that "a short-term rally towards $2,600-$2,700 looks possible." However, he noted that the potential rebound could be a "dead cat bounce."
Meanwhile, Altcoin Sherpa indicated that the cryptocurrency could move sideways for the next few months, pointing to ETH’s performance after losing the $2,900 support in August 2024.
Ethereum moved within the $2,100-$2,800 price range from August to November 2024, with the second-largest crypto’s current price action starting to resemble last summer’s performance.
Conclusion
As of this writing, Ethereum trades at $2,324, a 15% drop in the weekly timeframe. The cryptocurrency’s price movement is closely watched by investors and analysts, with some predicting a potential short-term rally or a sideways move. However, the risk of a further drop to $2,180 remains, making it crucial for investors to monitor the price action closely.
FAQs
Q: What is the current price of Ethereum?
A: As of this writing, Ethereum’s price is $2,324.
Q: What are the key support levels for Ethereum?
A: The key support levels for Ethereum are $2,345, $2,320-$2,330, and $2,180.
Q: What are the potential short-term movements for Ethereum’s price?
A: Some analysts predict a short-term rally to $2,600-$2,700, while others suggest a sideways move within the current range. However, there is also a risk of a further drop to $2,180.
