Ethereum's $2K Test: Bulls vs Bears in Tight Race
1min read Ethereum, the second-largest cryptocurrency by market capitalization, has been under recovery since its recent plunge to a key support level. Despite a significant bounce back, the cryptocurrency is now losing momentum, raising concerns about a potential big crash. The crucial question on investors' minds is whether the $2,000 level will hold.
Ethereum has been mirroring Bitcoin's weekly movement, but it has failed to break below its critical $2,100 support level, which has been holding for the past four months. The cryptocurrency has since recovered to around $2,378, but it is facing resistance at the $2,550 level. A surge above this level could trigger further increases in the coming days.
However, a double-top pattern on the weekly chart suggests that Ethereum's price may crash soon, with a potential target level of $1,650. If the price touches this level, a major bounceback is expected. The only condition for a bullish move at this point is holding the critical support level. If Ethereum continues to strengthen, we may see a strong rally above the important $3,000 level before considering a reversal.
The current trend favors the bears, but they appear set for another rally. The potential support levels for selling right now are $2,310 and $2,076. If the price breaks lower, $1,900 and $1,700 are the next support levels to consider for a test. In case of a reversal, Ethereum must retake a lot of resistance on the way up. The close resistance level to watch for a test is $2,550 and $2,700, with higher resistance levels at $2,920 and $3,213.
As of now, Ethereum's spot price is $2,378, with a bearish trend and high volatility. Investors should keep a close eye on the key resistance and support levels to make informed decisions about their investments.
