Ethereum Drops 4.5% Amid Key Support Levels

Ethereum's price action is currently at a critical juncture, with three key levels identified as potential support and resistance zones. According to blockchain analytics firm, large amounts of ETH have been accumulated at specific price points, which could create important technical zones as the cryptocurrency consolidates.

The first key level is at $1,546, where over 822,000 ETH was traded. This level is significant due to the massive buying interest, indicating that buyers at this level may prefer to cover their costs to avoid a loss. The second key level is at $1,598, where 725,000 ETH was traded. The third key level is at $1,457, where 408,000 ETH was traded. These levels may act as near-term support and resistance as price consolidates.

Ethereum has experienced a 4.5% drop in the past 24 hours, but it has maintained a 6.2% weekly gain amid market volatility. Despite the price weakness, some analysts remain optimistic. One analyst pointed to a neat weekly structure and good support levels, suggesting that ETH is quietly constructing something special. Another analyst stated that ETH sellers are exhausted and a magic rally is coming soon. A third analyst identified a potential descending channel breakout that could take Ethereum toward $3,000 if sufficient volume materializes.

The yearly performance of Ethereum remains challenging, with a 49.2% decrease over the past 12 months. However, this may also indicate that the asset is oversold, setting the stage for a potential rebound if the major levels of support hold. If the $1,546 support holds, it could be the foundation for an upward move to $1,598. However, if it drops below $1,457, it could result in more selling as traders at that point may be forced out. As ETH consolidates, these cost basis levels offer crucial insights into how market participants are likely to react, with market observers awaiting the next move with anticipation.