- Ethereum trading volume is down 18% in 24 hours.
- $2,120 resistance is crucial for ETH’s sustained upward movement.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has demonstrated remarkable resilience in recent days. Amidst broader market uncertainty and fluctuations, ETH showcased a bullish rebound, defying the downward trend that affected several other coins.
Over the past 24 hours, ETH surged by 4%, clawing back from recent losses and attempting to surpass the challenging resistance level of $2,100. This positive momentum came on the heels of a notable dip where ETH had fallen to around $1,900 in the previous week. However, concerns about market stability persist among investors, reflected in an 18% decline in trading volume over the same period.
The ongoing market fluctuations have coincided with a significant event in the crypto world – the upheaval at Binance, the largest cryptocurrency exchange. Changpeng Zhao “CZ”, the founder and former CEO of Binance, stepped down amidst legal turmoil. Zhao’s release on a $175 million bond followed allegations of violating financial regulations, specifically the Bank Secrecy Act, by allowing U.S. customers to trade on the platform without proper compliance checks.
While market sentiments remain cautious, there’s a noticeable trend among large ETH holders dubbed as “ETH Whales.” These major wallets have consistently increased their ETH holdings over the past year, with a significant surge recorded on Tuesday. It indicates growing confidence among big players in Ethereum’s potential.
Ethereum Bull Rally Soon?
Analyzing Ethereum’s price movements presents a bullish picture. The daily chart signals that the 9-day exponential moving average (EMA) is positioned below the current trading price of $2012. Despite this, the daily relative strength index (RSI) indicates conditions above the neutral mark, standing at 61.
Ethereum Price Chart, Source: TradingView
Key resistance levels at $2,120 pose a crucial challenge for Ethereum. Failure to surpass this resistance could lead to a fresh decline. Initial support is anticipated at around $2,050, followed by the pivotal $2,000 mark. It represents the 50% Fibonacci retracement level from recent swings.
Meanwhile, the primary support level rests at $1,980. A breach below this crucial support might trigger further downward movements, potentially driving ETH toward the $1,920 support zone in the near term.
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