Ethereum’s remarkable May rally faces a crucial test as the second-largest cryptocurrency struggles to maintain its position above $2,500. After surging more than 35% in early May and touching $2,700, ETH has entered a period of consolidation that could determine its next major move.
As highlighted in our recent analysis Ethereum Price Faces Critical $2,350 Support Test After Lower Lows, the support zone between $2,350-$2,430 has become increasingly significant for ETH’s price trajectory.
On-Chain Data Reveals Critical Support Level
According to prominent analyst Ali Martinez, on-chain metrics from Sentora (formerly IntoTheBlock) have identified a crucial support cluster where 2.64 million addresses hold 63.9 million ETH tokens. This massive accumulation zone, centered around $2,395, represents a total position value of $153.04 billion.
Technical Analysis and Price Action
The current price action shows ETH trading at $2,480, up 0.7% in the last 24 hours but down 4% week-over-week. The immediate challenge for bulls is defending the psychological $2,500 level, while the broader support zone between $2,354-$2,430 could prove decisive for ETH’s next directional move.
Key Factors to Watch
- On-chain support: 2.64 million addresses at $2,395
- Current resistance: $2,500 psychological level
- Weekly performance: -4%
- 24-hour change: +0.7%
- Risk level: $2,200 if support fails
FAQ Section
What is the strongest support level for Ethereum right now?
The strongest support lies in the $2,354-$2,430 range, where 2.64 million addresses hold positions.
Could Ethereum drop below $2,400?
While possible, strong on-chain support suggests significant buying pressure would emerge near $2,400.
What’s the next resistance level if ETH recovers?
The immediate resistance sits at $2,500, with clear skies above according to on-chain data.
Investors should closely monitor the $2,400 support zone, as a breach could trigger a deeper correction toward $2,200. However, the substantial accumulation zone suggests strong defensive buying should emerge around these levels.