Ethereum experienced a historic 25% sell-off on Monday amid market-wide panic, sending shockwaves through the crypto space. However, within hours, the price rebounded, erasing nearly the entire drop and stabilizing above key support levels. Despite this swift recovery, ETH now faces uncertainty as it trades below crucial resistance.
Top analyst Daan reveals that both Bitcoin and Ethereum are currently consolidating, attempting to form a higher low after the dramatic flush. This phase is critical for determining the next major trend, as holding above current levels could signal the beginning of a new bullish leg. Failure to establish strong support could lead to further downside, putting ETH at risk of another correction.
Ethereum is struggling to gain momentum after last week’s volatility, trading below the $2,800 mark. The uncertainty has led to a decline in investor confidence, with many questioning whether ETH can reclaim its bullish structure. If Ethereum successfully breaks above its consolidation channel, it could gain the momentum needed to push above key supply levels and start a new bullish phase. However, failure to do so could lead to more downside pressure.
The coming weeks will be crucial for Ethereum’s price trajectory. If ETH can hold above $2,700 and push toward $3,000, it may spark renewed interest from investors. However, continued failure to reclaim key resistance levels could push Ethereum into deeper consolidation, further frustrating market participants. Despite short-term uncertainty, institutions continue to accumulate ETH, recognizing its long-term value.
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ETH is currently trading at $2,750 after days of consolidation below the $2,900 mark. Bulls are attempting to hold the $2,700 support zone while looking for a breakout above $2,800 to regain short-term control. The most critical resistance level remains at $3,000. If Ethereum can successfully push above this price and turn it into support, it will open the door for a rally into higher supply levels, potentially triggering a move toward $3,300 or higher.
On the downside, holding above $2,700 is crucial for avoiding further selling pressure. A drop toward $2,600 or even $2,500 could be the next move if this level fails. Traders will continue to watch for a decisive breakout as long as Ethereum remains within this consolidation range.
Tags: ethereum, eth price, ethereum analysis, ethereum consolidation, ethereum support levels
Source: NewssBTC