The cryptocurrency market experiences a significant drop in market capitalization amid potential market manipulation, following a recent hack on Bybit.
Ethereum (ETH) Testing Key Support
On the weekly chart, ETH's price action is consolidating within a long-term symmetrical triangle. The latest correction that started after ETH rejected the upper resistance of the triangle at $4,107 has pushed ETH down to retest its support at $2,152, from which it slightly bounced. Currently, ETH is trading around $2,490 and is testing the critical 200 moving average, which previously acted as a bounce level.
Bearish Scenario – What If ETH Fails to Hold Support?
Despite showing signs of support, bearish risks remain present. If ETH fails to hold the 200-MA, it would likely retest the lower trendline support of the symmetrical triangle, currently around $2,250-2,300. The MACD is in negative territory, indicating dominant bearish momentum. However, a potential bullish crossover in the coming weeks could indicate a trend reversal.
Final Thoughts
Ethereum's price action is at a critical juncture, where a successful bounce could fuel a broader recovery in the altcoin market. However, failure to hold key support levels could lead to a more substantial downtrend. Traders should closely monitor ETH's price around the $2,480 - $2,500 range to determine the next significant move.
Ethereum's market dynamics highlight the importance of holding key levels for further price movement. Investors should remain cautious.
