Ethereum

Ethereum Price Holds $2,400 as Power of Three Setup Teases Bullish Reversal

1 day ago
Bitcoin Ethereum News

TLDR:

  • Ethereum defends $2,400 in a Power of Three setup with a bullish bias.
  • Analysts spot potential upside targets at $2,800 if support holds.
  • Liquidation clusters signal volatility ahead around $2,520 and $2,370.
  • Bitcoin’s performance may sway Ethereum’s trajectory despite technical signals.

Ethereum price action has reached a pivotal moment as the cryptocurrency tests crucial support levels around $2,400. 

Market analysts are closely monitoring this zone as it could determine whether ETH breaks into a bullish expansion phase or faces further downside pressure. The current price movement follows a classic technical pattern that traders call the Power of Three setup. 

Recent trading sessions have shown increased volatility as investors weigh the strength of this support level. The outcome of this test could influence Ethereum’s trajectory for the coming weeks.

Ethereum Technical Analysis Points to Key Breakout Zone

Crypto analyst Sjuul from AltCryptoGems highlighted the importance of the $2,400 level for Ethereum’s technical outlook. 

The analyst noted that ETH needs to maintain this support to confirm a potential Power of Three formation on the 12-hour chart. This technical pattern typically involves an accumulation phase followed by a false breakdown before the actual bullish move begins.

The chart analysis reveals an extended accumulation range between $2,400 and $2,860. 

After a brief dip below the range low, Ethereum quickly reclaimed the $2,400 support level. This recovery pattern often signals strength and can lead to upward movement if the support holds firm.

Should Ethereum successfully defend the $2,400 support zone, analysts project potential targets in the $2,800 to $2,900 range. The path higher would likely encounter resistance around $2,500 and $2,650 levels before reaching these upper targets. 

These intermediate levels represent areas where selling pressure could temporarily halt the advance.

Market observer Zen from WiseAnalyze provided additional insight on key levels to monitor. The analyst identified resistance points at $2,520, $2,680, and $2,788 for bullish scenarios. 

However, failure to hold current support could open the door to declines toward $2,375, $2,323, and potentially down to $2,283.

ETH Current Market Conditions Show Mixed Signals

Ethereum currently trades at $2,428.81 according to CoinGecko data, representing a modest 0.71% gain over the past 24 hours. However, the weekly performance shows a 2.43% decline, indicating recent selling pressure. 

ETH price on CoinGecko

Trading volume remains robust at over $16.7 billion, suggesting active participation from both buyers and sellers.

The liquidation heatmap reveals clusters of positions above and below current levels. Major liquidation zones sit at $2,521, $2,573, and $2,625 on the upside, while downside clusters appear at $2,371, $2,333, and $2,288. These levels often act as magnets for price action as the market seeks to trigger stop losses and liquidate leveraged positions.

Analysts warn that Bitcoin’s performance could heavily influence Ethereum’s next move, regardless of technical setups. 

The correlation between major cryptocurrencies means that any significant Bitcoin decline would likely pull ETH lower as well. This interdependence adds another layer of complexity to predicting Ethereum’s immediate direction.

The coming sessions will prove crucial for determining whether Ethereum can build on its current support or if further weakness lies ahead. Monitoring the $2,400 level closely will be critical as a break below could invalidate the bullish Power of Three scenario.

 

The post Ethereum Price Holds $2,400 as Power of Three Setup Teases Bullish Reversal appeared first on Blockonomi.

Source: https://blockonomi.com/ethereum-price-holds-2400-as-power-of-three-setup-teases-bullish-reversal/