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- Ethereum ($ETH) is currently holding at $2.4K.
- The selling pressure is accelerating to the downside.
The largest altcoin, Ethereum ($ETH), has strengthened its market structure after buyers successfully defended the long-term ascending trendline. The reaction from this macro support triggered a sharp recovery, allowing $ETH to break through the initial resistance zone and turn that former ceiling into near-term support.
$ETH is currently trading at $2,404, with $13.23 billion in 24-hour trading volume. The price has moved between $2,357 and $2,417 over the past day, while the seven-day range stands at $2,357-$2,558. The recovery has kept broader bullish momentum intact; the latest price action suggests the market could cool after the aggressive advance.
Ethereum’s Support and Resistance Levels
The immediate question is whether the asset can hold its newly reclaimed support as it approaches the next supply zone. A short-term pullback toward $2,300-$2,200 remains possible, with the $2,324 0.236 Fibonacci level offering an earlier potential support area.
From an Elliott Wave perspective, $ETH appears to be completing daily Wave 3, leaving a potential Wave 4 correction between $2,112 and $2,222. Because the previous Wave 2 was particularly sharp, the current correction could remain relatively shallow. A daily close below $2,050 would invalidate this Wave 4 structure.
On the other hand, an upside bounce from $2,324 could push Ethereum toward the $2,784-$2,966 target zone before another deeper retracement becomes possible. Furthermore, the broader bullish objective remains at around $3,000.
For now, the price action reflects a market shifting from recovery toward expansion. Holding reclaimed support while absorbing overhead supply would strengthen the bullish case, whereas losing key support could delay the next major advance.
Will the $ETH Momentum Weakens Further?
The MACD line is found below the signal line, and both lines are below the zero line. This crossover suggests strong bearish momentum across both the short-term and the long-term timeframes. Notably, the overall market trend of Ethereum is strictly bearish.
Also, the selling pressure is actively accelerating to the downside. It is one of the strongest sell signals in technical analysis, showing that the bears are in firm control and prices are likely to push lower.
Additionally, the daily RSI of $ETH is positioned at 43.73, indicating neutral-to-slightly bearish momentum. Trading below the 50 mark shows that the price movements have slightly outweighed upward gains over recent candles.
There is enough room for the price to move lower before becoming overextended. Traders look for a break above 50 to confirm renewed bullish momentum or a drop below 40 to signal accelerating selling pressure.
Source: cryptonews.net