Ethereum has dropped significantly, losing more than 50% of its value since late December, driving fear and panic sales across the market. The recession has led many analysts to question the possibility of this year’s Alto season. With ETH not exceeding its critical zone of resistance, investors remain uncertain about its short-term direction, and market sentiment is bearish.
Despite pessimism, there are signs of potential recovery. Intotheblock’s on-chain data shows the ETH left exchange left by ETH ETH of $1.8 billion last week, marking the largest weekly outflow since December 2022. Large outflows from the exchanges usually indicate that investors are moving their ETH to private wallets, suggesting long-term accumulation rather than immediate sales. This trend could mean that whales and institutional players view current prices as opportunities despite wider market uncertainty.
If Ethereum can maintain and stabilize its main support levels, it could potentially be placed for strong rebounds in the coming weeks. However, for ETH to see a true recovery, the Bulls will need to regain their critical resistance zone and maintain their purchasing momentum. Until then, traders remain cautious and see if Ethereum makes a comeback or if there are more drawbacks ahead.
The next few weeks will be very important as ETH’s ability to surpass key demand zones allows for a reversal of trends and whether sales pressures continue to fall.
Ethereum Bulls should keep $2,000 in support
Ethereum is currently trading above $2,000, but the Bulls find it difficult to regain a higher level amidst sustained sales pressure. The market remains fragile and investors are closely watching whether ETH can establish a recovery or continue its downward trajectory.
For a meaningful recovery, ETH must regain the $2,350 level. This sets the basis for potential rebounds. However, the Bulls’ main resistance zone remains at $2,500. This is an important level that has historically served as a strong barrier. A break and retention of over $2,500 will likely trigger a recovery rally, changing momentum and giving buyers an advantage.
Conversely, failing to hold $2,000 will extend the downward trend of Ethereum, increasing the chances of further declines. Losing this critical level could lead to ETH risk testing lower demand zones, leading to more aggressive sales pressure.
Dall-E special images, TradingView chart
