Major cryptocurrencies had a weaker start to the week as investors appeared to be lowering their exposure to the wider market in anticipation of lower prices as they remained concerned about the decline in the price of Bitcoin.
In line with the general market trend, Ethereum, the second-largest cryptocurrency by market value, dropped 2.66% to $2,408 in the previous day.
Ethereum has been falling slowly since hitting a high of $2717 on January 12. This has brought Ethereum to a critical demand zone, which is still critical to its short-term price action.
Crypto expert Ali claims that ETH is presently trading between $2,388 and $2,460, which is a crucial demand zone. There appears to be a clean route ahead with little opposition, providing the possibility for higher growth, if current support stays firm.
https://x.com/ali_charts/status/1749197673838604379?s=20
However, if ETH is unable to maintain above this critical support level, a negative scenario may materialise. According to Ali, if ETH is unable to hold this level, there may be a retreat to the next major support zone, which is estimated to be around $2,000.
A journey to about $2,000 would represent a 17% decrease from the $2,408 current price. The daily Simple Moving Average (SMA) 200, which is now at $1,923, is the next significant support below $2,000 in the model.
If this level is broken, more losses might occur, perhaps reaching the $1,800 and $1,700 marks. In the meanwhile, the daily SMA 50 level around $2,338 may try to limit short-term losses.
However, ETH may restart its upward trend and retrace its steps to the $2,614 level if it reverses from its present dips and rebounds off the $2,388 and $2,460 support zones.
The next resistance points for the currency are around $2,717 and $2,900, although a break above these levels may open the door for a rise there. Bulls’ ultimate goal is to recapture the psychological level of $3,000, which was last attained in April 2022.
