Ethereum Shows Key Support As Bearish Sign Appears

Ethereum, the second-biggest cryptocurrency, has revealed a crucial support zone facing a bearish signal. Crypto analyst Ali Martinez points out that Ethereum’s most important support lies between $2,314 and $2,435. This area matters because about 2.14 million addresses bought 51.67 million ETH here.

Source: Ali Martinez X post

A bearish sign called a death cross has popped up on Ethereum’s daily charts. This happens when a short-term average price line drops below a long-term one. For Ethereum, the 50-day average fell under the 200-day average.

Right now, ETH trades at $2,595, in the green. Two things could happen next. Buyers might jump in at the support zone, stopping Ethereum from falling more. But if this support breaks, Ethereum’s price could drop further.

Ethereum Price Rebounds

Ethereum hit $2,708 on Friday as the crypto market returned from Monday’s slump. The market fell earlier in the week after job reports hinted at a possible U.S. recession, causing stocks to sell off. On Monday, the Japanese yen also gained against the U.S. dollar, making investors nervous.

However, new data on Thursday showed that fewer people filed for unemployment benefits than last week. This has calmed worries about the U.S. economy for now. Ethereum’s price is up 3.05% today, according to CoinMarketCap. However, it’s still down about 18% for the week.

Despite the rebound, market watchers remain cautious. The death cross signal suggests more downside risk for Ethereum. However, the strong support zone between $2,314 and $2,435 could help limit potential losses.

Investors are closely monitoring technical indicators and broader economic trends. The crypto market often moves with traditional financial markets, especially during economic uncertainty.

As always, the crypto world remains unpredictable. While Ethereum shows signs of recovery, its price could still go either way. The critical support zone will likely determine Ethereum’s short-term price direction. Traders and investors should stay alert and manage their risks carefully in this volatile market.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.