Ethereum [ETH] finds itself at a critical crossroads, with its value hovering close to $2,350. In the event that it dips below $2,345, more than 2 million holders of 58.88 million ETH might face losses.
Given this pivotal threshold, it is imperative to delve into ETH’s price trajectory, on-chain statistics, and overall market sentiment.
Crucial Levels of Support and Resistance
An examination of Ethereum’s price chart reveals a recent rebound from the $2,300 mark, yet it remains below important moving averages. The 50-day Moving Average (MA) is currently positioned at $2,678, while the 200-day MA stands at $3,271, indicating a bearish trend in the short term.
Notably, ETH encounters immediate resistance at around $2,400, with a more formidable barrier at $2,500. The recapture of these levels through bullish momentum could instigate a positive shift in sentiment.
On the flip side, breaching the $2,345 support level would expose ETH to a precarious position, with the subsequent notable support lying in the vicinity of $2,250.
A breach beneath this threshold could accelerate selling pressure, unlocking further downside potential targeting the $2,100-$2,150 range.
Cautionary Signals from Ethereum’s On-Chain Metrics
Data from IntoTheBlock indicates that 82.76% of ETH holders are currently enjoying profits at prevailing levels, with a drop below $2,345 poised to alter this landscape significantly.
Approximately 17.14% of addresses, holding 13.14 million ETH, are already recording losses, and this figure could rise with further price deterioration.
Moreover, Glassnode’s findings on new Ethereum addresses suggest a downward trend. From surpassing 150,000 daily new addresses in early January, the count has now slipped below the 100,000 mark.
This downward trajectory hints at reduced network activity and waning new demand for ETH, which could constrain bullish momentum in the near term.
Market Sentiment and Potential Scenarios for Ethereum
Presently, the MACD indicator remains in negative territory, reflecting the prevailing bearish momentum. Nevertheless, with the Average Daily Range (ADR) standing at 132.92, significant volatility is anticipated, implying that ETH could witness sharp price fluctuations in either direction.
A recovery for ETH would necessitate buyers to intervene at the $2,345 level and propel prices above immediate resistance. Sustaining this support and witnessing a surge in new demand could pave the way for a reversal targeting $2,500 and beyond.
However, in the event of heightened selling pressure, ETH could break lower, leading to further downside risks.
Final Thoughts
Ethereum finds itself at a pivotal price juncture, and the forthcoming trading sessions will be crucial in determining its trajectory. A sustained breach below $2,345 could trigger a sharper decline, whereas maintaining levels above it might fuel a temporary recovery.
Investors are advised to closely monitor on-chain activities, market sentiment, and key technical thresholds to assess the next moves in ETH’s price performance.