Ethereum (ETH) has seen a significant price correction, shedding approximately 13% over the past week, a move that has led it to lose a key local range and test critical support levels. Crypto analyst Daan Crypto Trades highlights that Ethereum is now back to its familiar behavior: bouncing between established support and resistance zones.
According to Daan Crypto Trades, Ethereum “indeed lost its local range and tested the $2.1K level which was the main support level we were looking for.” This indicates that the recent downturn was severe enough to push ETH to a pivotal point previously identified as a crucial floor for its price.
Currently, the analyst observes that Ethereum is “doing what it does best which is bouncing between the $2.1K & $2.8K support/resistance levels.”
This suggests that despite the recent sharp decline, ETH is finding temporary stability within these established boundaries. The $2.1K mark is acting as a strong support, while $2.8K is presenting significant resistance, preventing further upward movement for now.
Daan Crypto Trades emphasizes treating this as part of a “larger range.” The sentiment in the market around these levels is described as a common pattern: “Most of what we’re seeing is people getting bullish at resistance and bearish at support.” This implies that traders are buying when the price approaches $2.1K and selling as it nears $2.8K.
For the immediate future, these two levels — $2.1K as support and $2.8K as resistance — are deemed critical. The market’s reaction to these boundaries will likely dictate Ethereum’s short-to-medium term trajectory. If the $2.1K support holds strong, Ethereum might continue to consolidate within this range.
However, a decisive break below this level could signal further downside, while a sustained push above $2.8K would indicate a potential shift back towards more bullish momentum. Investors are advised to closely watch these key levels for clues on Ethereum’s next significant move.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/market/what-could-be-next-for-ethereum-after-losing-13-in-a-week/