Ethereum appeared to have reached a critical trading level following a back-to-back loss since the start of the year. Negotiating the next major move, it currently sits at $2k after posting roughly 13% in a week.
Following a notable loss in the last three months, Ethereum’s correlation with Bitcoin’s movement remains intact from a short-term perspective.
However, things have turned uglier lately as the asset continued to paint serious bearish scenarios after retracing slightly earlier this month. It just reached a crucial trading zone and looks set to lose the important $2k level at the time of writing. While the selling pressure is now calm, it seems to be negotiating the important level from a technical standpoint.
An increase in the supply level could cause a serious collapse in the near term. If that happens, the October 2023 surge level of $1,600 will be the key target range to watch for a test. A strong hold above this important level could trigger a brief consolidation phase before breaking lower.
Whichever way, Ethereum will likely lose this key level, considering the past months of reductions. It appeared to end the bullish cycle as it slowly gathered momentum for a major crash on a long-term scale.
ETH’s Key Level To Watch
Source: Tradingview
Retaking the $2,076 level could bring a retest at last week’s $2,310 high. Right above this high lies the $2,550 level, marked as the monthly high. If by chance ETH reclaims it, we may see a slight market structure shift.
But from the look of things, Ethereum will likely go more bearish, and it may navigate the $1,904 support soon. The next support levels to watch below it are $1,750 and $1,640 – drawn from the October 2023 levels.
Key Resistance Levels: $2,076, $2,310, $2,550
Key Support Levels: $1,904, $1,750, $1,640
- Spot Price: $2,036
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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