Ethereum has been struggling to reclaim the $2,800 mark as support, leaving investors uncertain about the short-term direction of its price. The second-largest cryptocurrency has been unable to start a recovery rally, with analysts increasingly calling for a bearish continuation. The negative sentiment has been fueled by Ethereum’s underwhelming performance compared to market expectations, keeping the price range bound below key supply levels.
Despite the pessimism, some investors remain hopeful that Ethereum could enter a recovery phase soon. A potential rebound could emerge as the market begins to find stability. Adding to the optimism, top analyst Ali Martinez shared key metrics revealing a significant development: more than 900,000 Ethereum have been withdrawn from exchanges in the past 10 days. This trend signals increased accumulation by larger players and reduced sell pressure, suggesting that investors may be preparing for a potential rally.
The substantial withdrawal of ETH from exchanges could indicate growing confidence among long-term holders, even amid short-term price struggles. As ETH continues to consolidate below the $2,800 mark, the next few days will be critical for determining whether it can reverse its bearish trend or face further downside. Investors are watching closely to see if ETH can turn the tide and reclaim higher levels.
Ethereum Metrics Signal Strong Accumulation
Ethereum is grappling with significant volatility as it consolidates below the $2,800 mark, a crucial level that bulls need to reclaim to initiate a recovery rally. Sentiment in the market remains divided, with retail investors fearing further downside while some analysts anticipate an aggressive rally in the coming months. Ethereum appears to be at a pivotal phase in this cycle, struggling to gain momentum like Bitcoin, which has shown relative strength.
Martinez has shared key data shedding light on Ethereum’s current dynamics. Over the past 10 days, more than 900,000 Ethereum have been withdrawn from exchanges, signaling increased accumulation by larger players and reduced sell pressure. This trend suggests that institutional and long-term investors may be preparing for a potential upward move, even as retail participants grow more cautious.
The past few weeks have been challenging for Ethereum holders. Last week’s dramatic sell-off saw ETH plummet from $3,150 to $2,150 in less than two days. While the price has since recovered into the $2,600-$2,700 range, ETH has struggled to break through key supply levels and regain its footing above $2,800.
As Ethereum consolidates at current levels, the next few days will be critical. If bulls manage to reclaim the $2,800 mark and push higher, it could signal the start of a new bullish phase. Conversely, failure to break above these levels could result in prolonged consolidation or even further downside, adding to the uncertainty. Investors and analysts alike are closely watching the market, waiting to see if Ethereum can break free from its bearish grip and chart a path to recovery.
Price Testing Supply Level
Ethereum is trading at $2,720 after days of sideways trading and indecision. The market appears stuck in a phase of speculation, with sentiment sharply divided regarding short-term price direction. Investors are waiting for a clear signal as ETH consolidates below critical resistance levels.
For Ethereum to confirm a recovery uptrend, bulls need to reclaim the $2,800 mark as support and push the price above the psychological $3,000 level. Breaking through these levels would signal bullish momentum and set the stage for a rally toward higher supply zones. The $3,000 level also aligns with the 200-day moving average, a key indicator of long-term trend direction. A sustained move above this level would bring renewed optimism to the market.
However, the risk of further downside remains. If Ethereum fails to reclaim the $2,800 level, the price could retrace to lower demand zones around $2,500. This scenario would likely amplify bearish sentiment and prolong the current period of uncertainty. With sentiment divided and the broader crypto market showing mixed signals, Ethereum’s next move will likely set the tone for its performance in the weeks to come. Both bulls and bears are eyeing the $2,800 mark as a critical inflection point for the second-largest cryptocurrency.
Featured image from Dall-E, chart from TradingView