Ethereum is currently trading near a significant level that is closely monitored by many traders. Following a rejection from resistance, the asset is holding just above a key support zone that aligns with important technical patterns. The price action observed around the $2,700 mark is anticipated to be a crucial factor in determining the next direction of Ethereum's movement.
Ethereum Consolidates Above Key Support
At the time of reporting, ETH is valued at $2,870, reflecting a 2% increase over the last 24 hours but a 6% decrease over the past week. The critical support level under observation is approximately $2,700. According to insights from Bitcoinsensus, Ethereum appears to be within a Wyckoff re-accumulation structure and has entered what is termed the “Last Point of Support” phase. Maintaining this level is considered vital for preserving the bullish structure of the asset.
“$2,700 per $ETH is key to hold,” the analysis noted.
A successful stabilization above this zone could potentially pave the way for the structure to advance towards higher targets, with projections suggesting levels above $5,600. Conversely, a breach below this support level would risk invalidating the current setup and could signal a shift in the prevailing trend.
In addition to this, analyst Mister Crypto shared a chart indicating a bullish divergence on Ethereum. This divergence is characterized by the price making lower lows while the Relative Strength Index (RSI) forms higher lows, a pattern often observed when selling momentum begins to wane.
The chart was accompanied by the statement, “BULLISH DIVERGENCE ON $ETH!” This signal, while not a definitive confirmation of a reversal, frequently precedes trend changes, especially when supported by other relevant data points.
Rejection at Resistance Zone Triggers Short Setups
Earlier, Ethereum encountered resistance near the $2,950–$3,000 price range, leading to a pullback. Analyst Ted observed, “$ETH got rejected from the $2,950–$3,000 resistance zone,” and highlighted the possibility of a retest of the $2,800 support level. He suggested that a recovery in the broader market could lead to a bounce from this support.
Similarly, Lennaert Snyder pointed out the rejection occurring near the $2,880 mark.
“This means our short scenario got triggered,” he stated.
For those considering new long positions, Snyder indicated that he is monitoring for a move towards the $2,680 area or a sweep below $2,620. He further commented that “there’s still a daily demand zone at ~$2,570” and he is observing the price action for a reaction at that level.
Some market observers suggest that Ethereum has returned to a price level that was instrumental in defining the previous market cycle. The dip to $2,800 has positioned ETH within what some consider an optimal buying zone. Should the current technical structure hold, analysts are discussing potential price targets around $9,000, based on wave continuation patterns.
Large Holders Accumulate ETH During Market Pullback
While some retail investors have shown signs of selling, significant holders have been increasing their positions. BitMine, under the leadership of Tom Lee, reportedly acquired 70,000 ETH in the past week, increasing its total holdings to 3% of the circulating supply. This accumulation coincided with a 20% rise in its stock value as ETH prices began to recover.
Data from StrategicEthReserve indicates that digital asset treasuries now collectively hold 6.36 million ETH, representing 5.26% of the total supply. This aggregate amount surpasses the holdings of Ethereum ETFs, signaling continued accumulation by these entities despite the recent price decline.