The crypto market is closely watching Ethereum as it balances on the $2,800 mark. Will the asset reach new heights, or is it headed for trouble?
Current Market Situation
Ethereum is currently priced at $2,800. This is a crucial level, and surpassing it could lead to significant growth to levels not seen since July, when spot Ether ETFs started trading. If the price doesn't hold, a decline to $2,600 is possible, potentially liquidating $1.07 billion in long positions.
Analysts' Opinions and Forecasts
Many traders are feeling optimistic. According to Coinglass, only about $400 million would be at risk if Ethereum moves up rather than down. However, Jamie Coutts of Real Vision warns that a rally is only possible if Ethereum’s network activity increases. CITE_W_A: "Fees are at four-year lows," Coutts posted on Twitter. He also mentioned while layer-2 adoption is “strong,” it’s just not enough yet.
Support and Resistance Levels
Analysts are eyeing specific levels for Ethereum. To continue the bullish momentum, the price needs to stay above $2,888, offering a strong buying opportunity. If not, the next support level is at $2,253, corresponding to the 38.2% Fibonacci retracement level. Dropping below this could signal a bearish trend. The charts show mixed signals. The long-term rising trendline has been holding up well, but the short-term falling trendline is set to intersect later this month. Regarding on-chain metrics, Ethereum’s Network Value to Transactions (NVT) ratio has dropped to -53.05. While this sounds bad, it might indicate undervaluation.
Will Ethereum continue to rise, or will we see a decline? Only time will tell, but the current situation remains tense and unpredictable.
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