In a noteworthy turn of events, Ethereum (ETH) has been riding a bullish wave, showcasing a remarkable recovery over the past few months. Despite this positive trend, market sentiments have recently shifted, with sellers gearing up to take center stage in the wake of looming Bitcoin Halving events.
The highly regarded crypto analyst, Crypto Tony, has provided key insights to illuminate the current situation. In a recent post on the X platform, Tony emphasized the critical importance of the $2,400 level for Ethereum.
According to the analyst, this level is pivotal in determining the cryptocurrency’s future trajectory. As Ethereum enthusiasts and investors closely monitor the market, the $2,400 mark emerges as a crucial threshold, and all eyes are on whether the digital asset can maintain its position above this level. The significance of this juncture lies in its potential to either fortify the bullish momentum or open the door for bears to exert control.
According to data from Into the Block, most Ethereum holders are in a profitable position, with a precise figure of 77.39% of addresses reporting gains. Conversely, 20.51% of addresses find themselves in the red, having purchased Ethereum at a higher price than its current value.
Analyzing the daily chart, buyers appear to be in control as they establish dominance within a rising channel. However, a cautionary note arises with observing a double top at the overhead trendline, signaling a potential retest of the $2400 breakout. Ethereum is trading at $2,472, showing resilience against a pullback despite a 2.45% decline recorded last day, resulting in $28 million worth of long liquidations.
The weekly RSI trend remains positive as it nears the overbought boundary, yet a bearish divergence in the last two peaks signals a brief pullback for trend correction. Given this scenario, buyers may view the $2400 level as an entry opportunity, employing a buy-low, sell-high strategy. Conversely, a breach below the $2400 support zone could initiate a price decline, targeting the psychological mark of $2000.
Crypto Tony’s analysis adds a layer of caution to Ethereum’s prevailing optimism, urging stakeholders to note the $2,400 level. As the cryptocurrency market continues to evolve, the coming weeks are poised to provide a clearer picture of Ethereum’s resilience in the face of potential challenges.
