- Ethereum price rose to $2,416 before falling to $2,325 with profit taking.
- Repeated rejections at the $2,360-$2,400 resistance level weaken the overall momentum.
- Stock price could fall below key support at $2,312 $ETH Towards $2,173.
After the rally that pushed Ethereum to near $2,416, things changed quickly and now $ETH Approximately $2,325.
This plunge around $2,400 says a lot about where Ethereum is headed next, at least for now.
Rebound at $2,416 resistance
Ethereum ($ETH) initially surged around 10% in a sharp move that caused liquidations and brought new attention to the token.
After reaching around $2,416, the momentum slowed and the price started to decline.
In recent weeks, the $2,360-$2,400 range has consistently acted as a supply zone, generating selling pressure each time. $ETH approach this level.
Broader market conditions also softened. According to data from CoinMarketCap, the market capitalization of cryptocurrencies decreased by approximately 1.12% due to the decline in trading volume.
This suggests that traders who entered on the recent rally are taking profits, further increasing near-term downward pressure. $ETH.
Pressure due to capital turnover
Another factor weighing on Ethereum ($ETH) Its market position is still changing.
Bitcoin’s dominance is on the rise, indicating that capital is circulating into Bitcoin rather than altcoins.
This typically reflects a more defensive stance on the part of investors.
Ethereum, the largest altcoin, is often the first to face pressure during such rotations.
Even if fundamentals are relatively stable, reduced capital inflows could limit the ability to maintain upward price momentum.
This trend is also seen in the following areas: $ETH/BTC ratio is struggling to stabilize.
A recovery in this ratio will be necessary to demonstrate renewed confidence in altcoins. Until then, Ethereum may continue to underperform Bitcoin in the short term.
$2,312 is now the key battleground.
Currently, $2,312 stands out as a major support level. It’s not just psychological. This is close to the 14-day moving average, which has already served as a bottom during the recent decline.
if $ETH The price has stabilized above $2,312, but the door remains open for further upside at $2,400.
However, things will start to change if $2,312 declines, and the bears will gain momentum while the bulls retreat.
In that case, the next thing to look at would be $2,173.
A decline from $2,312 to $2,173 is a 6% decline, which is fairly standard after a strong rally. It’s not outlandish or unusual. This is a realistic scenario when support runs out.
If buyers can push the price above $2,416 and sustain it, the recent rejection will fade and a bull market will start to look more likely.
We haven’t seen any panic selling yet, but the near-term picture looks a bit bearish. Just uncertainty.
It all comes down to the $2,312 support level. If buyers hold on to it, resistance may appear again. If not, a 6% decline is expected.
