Cryptocurrencies, in particular Ethereum (ETH), have experienced a significant decline in value in the past 24 hours, with ETH dropping around 10%. This slump from $2,721 to $2,313 has set the alarm bells ringing, with crypto analysts highlighting the importance of the $2,300 support level. If ETH fails to retain this level, it could potentially lead to further losses.
Waves of Decline Hit Ethereum Amidst General Crypto Market Downslide
The entire digital currency domain experienced a blow recently, with a near 10% fall. Approximately $300 billion of the total market cap was wiped out in this market turbulence. Amidst this ripple effect, the ETH market cap has also seen a considerable drop from $340 billion, reaching a low of $286 billion within a span of forty-eight hours.
Merlijn The Trader, a well-regarded crypto trader, commented on ETH’s recent performance in a post, pointing out that ETH seems to be testing the waters at the 50-day Simple Moving Average (50 SMA). This is a pivotal point for the digital asset, according to the analyst. The crypto analyst laid emphasis on the $2,350 price level, suggesting that dipping below this level might result in a volatile situation. Without adequate support, ETH might face a significant fall, with the succeeding major support level hovering around $1,100.
Ali Martinez, a fellow crypto analyst, reiterated Merlijn’s views, pinpointing $2,300 as a critical support mark for ETH. As per a 3-day chart, this level roughly corresponds to the lower end of the trading channel that ETH has been navigating since November 2024.
On the other hand, Daan Crypto Trades highlighted that ETH has consistently struggled to break through the $2,800 resistance level. Following an announcement by Bybit that it would replenish users’ ETH balances after the recent hack, ETH was hit by a sell-off. They added:
This cycle, both $BTC & $ETH have reacted well around the .786 levels. Hence, this area is under my scanner. BTC also just swept the range lows. The larger range between ~$2.1K-$2.8K remains the most important one. Nonetheless, I’m currently holding spot and not doing much.
Questioning the Future of Altseason
The continuous slump in ETH’s performance has raised questions about the occurrence of a full-blown altseason. Altseason is a term used to describe a market phase where altcoins, or digital currencies other than Bitcoin, yield remarkable returns in a short span.
Despite the currently bearish sentiment surrounding ETH, certain industry veterans anticipate a robust bounce back for the front-runner smart contract platform. CryptoQuant CEO Ki Young Ju noted in a post that the Ethereum sell-off post the Bybit attack was not considerably significant. He also proposed that positive crypto regulations under the leadership of US President Donald Trump could trigger a “large-cap ETF altseason.” This could potentially accelerate ETH’s price.
Crypto analyst Ted also gave reasons to be optimistic for altseason enthusiasts. He noted that the altcoin market cap had displayed its first golden cross since Q1 2021. He added:
The last time this happened, Altcoin market cap pumped 500% in just a few months. It looks like altseason will soon become a reality. Do you bullieve?
However, recent on-chain analysis does not inspire much confidence in ETH’s short-to-medium-term price action. At press time, ETH is trading at $2,418, down 9.5% in the past 24 hours.
FAQs
What is the current trading price of Ethereum (ETH)?
As of today, Ethereum is trading at $2,418, experiencing a 9.5% drop in the past 24 hours.
Is there a chance for a potential rebound of Ethereum?
Though the current market trends for Ethereum are bearish, some industry analysts anticipate a robust rebound in the future.
What is the significance of the $2,300 support level for Ethereum?
The $2,300 support level is seen as a critical point for Ethereum. If it fails to hold this level, it could potentially suffer further losses.
What is the altseason?
The altseason refers to a phase in the cryptocurrency market where altcoins, or digital currencies other than Bitcoin, yield high returns in a short period.
