If the price of ETH fails to protect its strong support zone around $2,000, we could see a sharp price decline to the next key area of interest.
The price of Ethereum (ETH) suffered a fresh decline from a daily high of $2,550 to $2,000. If the price fails to protect its support zone of $2,000, which acts as a safe demand area for whales, it could face more selling pressure in the coming days or weeks.
Despite the cryptocurrency market seeing some price bounce following Trump’s announcement of the US strategic crypto reserve, ETH’s price pump was a bull trap for many traders and investors looking to long the crypto asset as the price saw a significant price decline.
Ethereum’s (ETH) price action for the past weeks has been bearish. The price needs to break past the high of $2,800 to resume its bullish price action to the upside. With the current price action, whales and investors will pay attention to the price of ETH in the next few weeks or days before taking investment actions.
Although ETH’s technical analysis and fundamentals haven’t been encouraging, ETH spot ETF outflows in the past two months have dropped dramatically, indicating less interest in buying into the ETH price considering the uncertainty in the crypto market.
Source – Ethereum (ETH) 1D Price Chart From TradingView
The price of ETH was rejected at around $2,550. The price failed to break above its daily resistance, leading to a drop below its daily 50-day and 200-day EMAs (Exponential Moving Averages), which act as resistance for the price.
Ethereum’s (ETH) price needs to break above $3,000 to resume its bullish price action, with bulls expected to dominate at this point. If it fails to break above $3,000, we expect bears to dominate lower, meaning ETH’s price could eventually drop towards a low of $1,500, acting as a strong demand zone for price.
A drop in ETH’s price towards $1,500 could affect the overall sentiment, but a break above $3,000 could set the tone for Ethereum’s (ETH) price prediction towards a high of $5,000. In the current bull cycle, the price is expected to rally higher towards $7,000 to $10,000.
