Ethereum (ETH) has paused its impressive rally near $2,740 after surging over 50% in the past week, with analysts now eyeing a crucial retest of the $2,400 support level. The second-largest cryptocurrency by market cap is showing signs of consolidation after one of its strongest short-term performances in months, breaking through key resistance levels at $2,000 and $2,200 with relative ease.
As noted in recent market analysis showing broader altcoin momentum, Ethereum’s sustained strength is fueling optimism about a potential altseason, with ETH’s breakout potentially catalyzing moves across the altcoin market.
Critical Support Levels to Watch
Top crypto analyst Daan has identified $2,400 as a crucial support level that could determine ETH’s next major move. The analyst suggests this area needs to be retested for a healthier market structure, particularly given the extremely high open interest in ETH derivatives markets.
Key levels to monitor:
- Primary support: $2,400
- Secondary support: $2,100
- Current resistance: $2,700
- Major resistance: $3,000-$3,100
Technical Indicators and Market Structure
ETH is currently consolidating below the 200-day SMA at $2,702.93, with declining volume suggesting a period of price discovery. The 200-day EMA near $2,437 serves as additional technical support, aligning closely with the key $2,400 level identified by analysts.
Expert Analysis and Price Targets
Despite short-term consolidation risks, the overall structure remains bullish as long as ETH maintains support above $2,400. A successful defense of this level could set up ETH for a push toward the $3,000-$3,100 resistance zone, though traders should remain cautious until excessive leverage is flushed from the system.
Frequently Asked Questions
What is causing Ethereum’s recent price surge?
The rally has been driven by improving market sentiment, increased institutional interest, and broader crypto market momentum, particularly following Bitcoin’s strong performance.
Why is the $2,400 level significant?
This price point represents a key technical and psychological support level that previously acted as resistance. A successful retest would confirm the strength of the current uptrend.
What could trigger a deeper correction?
A loss of the $2,400 support level combined with high open interest could trigger liquidations and push ETH toward the $2,100 support zone.
