Ethereum (ETH) has shown remarkable resilience following a sharp 10% market correction, with bulls defending critical support at $2,400. The second-largest cryptocurrency by market cap is now positioning for a potential recovery, as technical indicators suggest accumulation at current levels.
In a significant development that coincides with broader market uncertainty, the recent Trump-Musk Twitter dispute has triggered substantial market volatility, testing ETH’s structural support levels. Despite this turbulence, Ethereum’s price action remains constructive above key moving averages.
Technical Analysis Points to Bullish Setup
According to prominent analyst M-Log1, ETH is currently testing the crucial 200-period moving average on the 4-hour timeframe. This technical level has historically served as a reliable trend indicator, with successful rebounds often preceding significant rallies. The immediate resistance zone lies at $2,600, where multiple technical indicators converge.
Weekly Chart Analysis
The weekly chart reveals a critical battle at the 200-week SMA ($2,450), with ETH showing signs of accumulation. While the recent rejection at $2,680 suggests some overhead resistance, the overall structure remains bullish as long as prices maintain above the $2,300-$2,250 support zone.
Key Price Levels to Watch
- Support: $2,300, $2,250 (confluence of 50W and 100W MA)
- Resistance: $2,600, $2,680 (previous swing high)
- Critical MA: 200-period MA on 4H chart
Market Implications
The current price action suggests that Ethereum could be preparing for a significant move, particularly if it can reclaim the $2,600 level. This potential rally could have broader implications for the altcoin market, possibly signaling the start of a new altseason.
FAQ
Q: What is the key level ETH needs to hold?
A: The critical support level is $2,300, with additional backing at the $2,250 zone.
Q: Could this lead to a broader altcoin rally?
A: Yes, if ETH breaks above $2,700, it could trigger renewed interest across the altcoin market.
Q: What timeframe should traders watch?
A: The 4-hour chart is currently most relevant for short-term movements, while the weekly chart provides the broader context.
