ETH Tests Critical $3K Support Level

 Ethereum is critically supported at $3,150 and $2,800 as it reacts to rejection at $3,400. Millions of tokens were accumulated at strategic levels.

Ethereum is trading at approximately 3,200 and is testing important support levels. The second-largest cryptocurrency is under pressure, accumulating following a violent rejection by resistance.

Market analysts point out two significant accumulation walls. These support levels might outline the short-term direction of ETH. Traders are keeping a close eye on the approach of the asset to the critical price areas.

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Million-Token Walls Emerge at Key Levels

Ali Charts on X indicate that Ethereum has two major support levels. The former is positioned at 3,150 and has 2.8 million tokens. The second one is at $2,800 and has 3.6 million tokens earned.

Source: Ali Charts on X

These concentration areas reflect a large amount of buy-side interest. Major holders have established themselves at these price levels. The institutional conviction is high based on the concentration of tokens.

On-chain historical data demonstrates that such levels attracted high-capital inflows. Whale wallets snowballed in prior dips. This purchasing practice provided natural support floors.

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Sharp Rejection Triggers Downside Momentum

Ted Pillows pointed out on X that ETH had been rejected at 3,400. The cryptocurrency is now moving downwards towards the zone of 3,000-3,100. This is the second important area of support.

Source:Ted Pillows  

This range is a potential trigger point for another rally. Bulls would expect a new buying force at such levels. Past price action depicted reversals of similar areas.

Nevertheless, lapses in support are dangerous. A collapse may drive ETH to the 2800 mark. This would put the deeper accumulation wall to the test.

The momentum is weakening according to technical indicators. Volume trends indicate low purchasing conviction. Traders defend before volatility can occur.

The resistance of 3,400 dollars was strong during the last efforts. Several rejections at this stage posed selling pressure. The bears took power over the bulls, who were tired of buying.

The failed breakout changed the mood in the market. Short-term investors lowered their exposure to run risk. Long-term investors hold low positions.

Recent price movement is similar to what has occurred in the past. Past cycles had similar rejections before consolidation stages. The market is in search of a balance between the buyers and sellers.

On-chain indicators indicate conflicting trends. The inflows of the exchange rose with some of the traders leaving their positions. In the meantime, staking activity is high, which indicates long-term confidence.

The next couple of days will be crucial. ETH needs to hold the ground in the range of 3,000-3,100. A clean bounce would regain bullish momentum in the shortest time possible.

On the other hand, the breakdown amplifies downside pressure. The support of the $2,800 becomes the last defence.