Ethereum Faces Crucial Support Test as Price Nears $2,850 Mark

Ethereum’s (ETH) price is at a pivotal moment, with CryptoJack emphasising its last chance to bounce back and repeat previous patterns. At press time, ETH is at $2,871.90, with a 24-hour trading volume of $27,887,116,354. 

Over the past 24 hours, Ethereum has declined by 9.78%, and in the past week, it has dropped by 16.32%. The market cap stands at $345,196,341,899, with a circulating supply of 120 million ETH. If Ethereum breaks below the $2,850 support level, it could spell short-term trouble.

The chart analysis reveals a clear support zone around the $2,879 level, marked by a red horizontal zone. This area has been tested multiple times, showing strong buying interest. Notably, the support level acts as a critical point for potential price reversal. Ethereum has previously bounced back from this support, making it a significant level to watch. However, if ETH falls below this support, it may indicate further downside.

Two descending trendlines illustrate the ongoing bearish trend. The first trendline, starting from early March, connects lower highs, highlighting a bearish sentiment. The second trendline is steeper, indicating an accelerated downtrend from late June. 

These trendlines are crucial as they define the current downtrend and potential resistance levels. Additionally, the blue lines on the chart suggest a potential bullish reversal pattern, such as a double bottom or W-shaped recovery. This pattern points to a possible bounce from the support level, followed by a significant upward movement.

If Ethereum successfully bounces from the support level and breaks through the descending trendlines, it may reach the projected price target of around $3,900. This target aligns with the previous high from early June. 

However, the current price of ETH is 41.02% lower than its all-time high of $4,878.26 recorded on November 10, 2021. This significant gap underscores the potential for a substantial recovery if the bullish reversal plays out.