Ethereum Tests $2,400 Support Amid Bullish Pattern

Ethereum's price has reached a critical juncture as it tests key support levels around $2,400. This level is pivotal as it could determine whether Ethereum enters a bullish expansion phase or faces further downside pressure. The current price movement follows a technical pattern known as the Power of Three setup, which involves an accumulation phase followed by a false breakdown before the actual bullish move begins.

Crypto analyst Sjuul from AltCryptoGems emphasized the importance of the $2,400 level for Ethereum’s technical outlook. The analyst noted that Ethereum needs to maintain this support to confirm a potential Power of Three formation on the 12-hour chart. This pattern often signals strength and can lead to upward movement if the support holds firm. Should Ethereum successfully defend the $2,400 support zone, analysts project potential targets in the $2,800 to $2,900 range. The path higher would likely encounter resistance around $2,500 and $2,650 levels before reaching these upper targets. These intermediate levels represent areas where selling pressure could temporarily halt the advance.

Market observer Zen from WiseAnalyze provided additional insight on key levels to monitor. The analyst identified resistance points at $2,520, $2,680, and $2,788 for bullish scenarios. However, failure to hold current support could open the door to declines toward $2,375, $2,323, and potentially down to $2,283.

Ethereum currently trades at $2,428.81, representing a modest 0.71% gain over the past 24 hours. However, the weekly performance shows a 2.43% decline, indicating recent selling pressure. The liquidation heatmap reveals clusters of positions above and below current levels. Major liquidation zones sit at $2,521, $2,573, and $2,625 on the upside, while downside clusters appear at $2,371, $2,333, and $2,288. These levels often act as magnets for price action as the market seeks to trigger stop losses and liquidate leveraged positions.

Analysts warn that Bitcoin’s performance could heavily influence Ethereum’s next move, regardless of technical setups. The correlation between major cryptocurrencies means that any significant Bitcoin decline would likely pull ETH lower as well. This interdependence adds another layer of complexity to predicting Ethereum’s immediate direction. The coming sessions will prove crucial for determining whether Ethereum can build on its current support or if further weakness lies ahead. Monitoring the $2,400 level closely will be critical as a break below could invalidate the bullish Power of Three scenario.