Ethereum (ETH) is holding critical support levels as traders monitor strength against Bitcoin. At the time of writing, ETH trades near $2,157, according to CoinMarketCap. Analysts have identified key price zones shaping ETH’s next move. Traders are watching closely for a decisive breakout or breakdown.
Early Strength Conditions
Daan Crypto Trades highlighted the importance of Ethereum’s performance against Bitcoin. He said for ETH to show short-term strength, the ETH/BTC pair must stay above the 0.03 level.
If ETH is able to recapture this level, then there would likely be a confirmation of a much stronger bullish momentum. This would also be a strong indication that the overall altcoin market is recovering.
However, he added that for either ETH or Bitcoin to show consistent and sustained upside, each needed to demonstrate improvement in momentum. Specifically, he pointed out that for Bitcoin to continue showing upside momentum, it would need to recapture the $72,000 level.
TradingView data indicates that the ETH/Bitcoin pair is currently trading near the 200 EMA on the 4-hour timeframe. The RSI indicator is also still below 50, indicating weak relative momentum.
Also Read | Ethereum (ETH) Rebounds from $2,100 Support but Weak Demand Raises Breakdown Risk
ETH Continues to Hold Support Amid Downtrend
Another analyst, Ted Pillows, said that ETH is currently holding its $2,100-$2,150 support zone. He noted that this support zone is extremely important for any short-term bullish continuation.
Ted Pillows said that if the support zone continues to hold, ETH might make another push upwards. However, if the support fails, it could trigger a move down to a lower price area.
His chart also shows resistance around $2,300. So, even if the support zone holds, upside momentum could be limited. There are several downside scenarios possible, and it appears that ETH could see a retest of current levels if the weakness continues.
Whale Profitability Returns to Positive Territory
Data from CryptoQuant indicates that whales (large ETH holders) are becoming increasingly profitable. Analyst CW8900 said that wallet balances larger than 100,000 ETH are now returning to profitability.
Historically, whale profitability has coincided with market bottoms. In addition, these types of transitions have signaled the start of upward trends.
Similar historical patterns are starting to appear in the ETH unrealized profit ratio chart. This is an indication that large ETH holders are accumulating this digital asset at its current price.
Market Structure Reflects Mixed Signals
The ETH price action has been consolidating after a rapid drop earlier this month. According to data from TradingView, trading activity has decreased despite the slight increase in price.
Without greater volume, ETH’s upward movement is unlikely to be sustained. The combination of weak ETH/BTC momentum and lack of volume makes it difficult to have confidence in any type of bullish conviction. Traders may need to wait for confirmation before making any aggressive positions.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read | Ethereum Tests Key Resistance at $2,157-$2,222 Amid Cautious Market Momentum
