Ethereum Struggles at $2,500: Can $2,150 Support Level Prevail?

Ethereum, the leading altcoin in the crypto market with a market cap of $280 billion, is currently facing challenges as it struggles to maintain its bullish momentum. Trading at $2,329 with a 0.95% drop in the last 24 hours and a 2.72% decrease over the past week, Ethereum is at a critical juncture. The co-founder of Ethereum, Vitalik Buterin, has been actively selling off his holdings, adding to the pressure on the cryptocurrency.

In the daily chart, Ethereum’s price action shows a struggle to sustain its bull cycle after four consecutive green candles. Trapped in a falling channel pattern, the price has dipped 2.49% from the opening value of $2,388, forming an intraday bearish engulfing candle. The failure to close above $2,500 for nine consecutive days indicates a potential downward movement towards the declining support trend line.

The recent price action reflects a bearish sentiment, with the possibility of another dip looming as indicated by the post-retest reversal of the broken supply zone. The MACD indicator’s failure to achieve a bullish crossover further supports the potential for a bearish revival in Ethereum’s price.

Despite some short-term optimism shown by Ethereum breaking through a local resistance trend line, the loss of crucial support at $2,350 undermines the bullish momentum. Maintaining support at $2,350 is essential to prevent a further decline towards $2,150. Conversely, a breakout above $2,500 could shift the focus towards the $2,750 supply zone.

The bearish pressure on Ethereum is exacerbated by regulatory challenges faced by major exchanges like Coinbase and Binance. Retail investor interest in decentralized applications has also declined by 19%, adding to the negative outlook. Additionally, a wallet associated with Vitalik Buterin has been actively selling off Ethereum tokens, further contributing to the bearish sentiment surrounding the cryptocurrency.

In conclusion, Ethereum’s ability to hold crucial support levels and overcome regulatory challenges will determine its future price movements. The current technical analysis suggests a potential retest is underway, but the presence of bearish signals indicates a challenging road ahead for Ethereum’s price. Investors should closely monitor key support levels and market developments to make informed decisions regarding Ethereum.