Ether (ETH) has taken a hit, plummeting over 52% in a three-month decline from its peak above $4,100 on December 16, 2024, per TradingView. The cryptocurrency now teeters on the edge of slipping below the crucial $1,900 mark, potentially sparking significant buying activity. Insights from Juan Pellicer, a senior research analyst at IntoTheBlock, reveal that on-chain data shows a robust demand area for ETH just under $1,900. Approximately 4.3 million ETH were historically bought within the $1,848–$1,905 range, indicating substantial support in this region. Nevertheless, breaching this level could escalate the risk of capitulation, given the apparent weaker demand beyond this threshold.
Key Support and Resistance Levels for Ether
ETH faces a critical juncture as it hovers near the $1,900 level. If it manages to hold above this support, it could pave the way for a potential rebound. However, a breach below $1,900 might open the doors for further downside movement, with the next major support likely around $1,800.
📉 What’s Behind Ether’s Price Plunge?
The substantial drop in Ether’s price can be attributed to a combination of factors, including profit-taking by investors after the previous rally, market sentiment shifts, and overall volatility in the crypto space. The recent downtrend in the broader market has also contributed to the bearish pressure on Ether.
⚡ What Lies Ahead for ETH?
The future trajectory of Ether largely hinges on its ability to defend the $1,900 support level. Should buyers step in to prevent a breakdown below this mark, a potential recovery towards $2,000 could be on the cards. However, failure to sustain above $1,900 might lead to further selling pressure, pushing Ether towards the $1,800 level.
🤔 Is It Time to Consider Buying ETH?
For traders eyeing an entry point, monitoring Ether’s behavior around the $1,900 support is crucial. If a bounce occurs from this level, it could present a buying opportunity with a target towards the $2,000 resistance. On the flip side, a decisive drop below $1,900 might warrant caution, as it could signal a deeper pullback in the near term.
Drop your thoughts below on whether Ether will hold above $1,900 or plunge further into bearish territory!
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