Ethereum is at a crucial juncture after failing to break above $2,500 on Monday. With the entire cryptocurrency market eyeing potential growth, Ethereum investors are closely watching for any signs of strength on the network. However, there are growing concerns about a possible deeper correction hanging over the market.

IntoTheBlock’s key indicators indicate that if Ethereum falls below the $2,300 level, a significant sell-off could occur, increasing pressure on the price. This has created a tense atmosphere among traders and investors awaiting clear confirmation that Ethereum can hold well above this critical support level.

As the broader market experiences uncertainty, Ethereum’s performance in the coming days will likely determine its trajectory. Investors are hopeful for bullish momentum, but many remain cautious, aware of the risks a drop below $2,300 could pose. The next few days will be crucial in shaping Ethereum’s future price action.

Ethereum Price Testing Key Demand

Ethereum is at a key turning point as its price remains undecided, oscillating between two significant levels that could result in significant gains or losses once the trend becomes clear. Currently trading in a narrow range, ETH investors and analysts are closely watching key areas of support and resistance.

Top analyst and investor Ali recently shared crucial information data from IntoTheBlock on Xhighlighting the critical nature of the $2,300 support level for Ethereum. According to the report, approximately 2.4 million addresses purchased approximately 52.6 million ETH at this level. This makes $2,300 a significant demand zone that, if breached, could trigger a wave of selling as investors look to protect their portfolios and minimize losses.

If Ethereum holds above this critical support, sentiment around ETH could shift towards a more positive one. Traders and investors can gain confidence, which can lead to potential growth. Ali’s analysis highlights the importance of the coming days in shaping Ethereum’s price action.

Ethereum’s performance at $2,300 will likely determine its near-term future, either as a base for gains or as a trigger for deeper corrections.

ETH technical analysis

Ethereum (ETH) is trading at $2,420, after a 3% bounce from the lower demand zone around $2,330. Despite the recent rally, the price remains less than 2% from the 4-hour moving average (MA) at $2,467 and about 3% from the exponential moving average (EMA) at $2,495. These moving averages represent critical resistance levels for ETH in the compact term.

Ethereum needs to break above the 200 MA and EMA and reach resistance levels above $2,500 to move the price higher. A clear break above this could open the door to further gains, and investors will be looking for signs of sustained momentum.

However, if Ethereum does not recover both indicators in the coming sessions, the risk of a deeper correction increases. In this case, ETH could return to lower demand zones, potentially falling to $2,150. Traders and investors are keeping a close eye on these levels as Ethereum’s next move will likely define the short-term trend.

Featured image from Dall-E, chart from TradingView