Key Insights
- •ETH remains below its 20‑day moving average, indicating weak short‑term momentum for buyers.
- •The support zone at $2.5K–$2.6K is critical for preventing further decline.
- •Resistance at $3K–$3.1K is currently capping upside progress, trapping Ethereum in a range.
Ethereum was priced around $2,826.53, reflecting a 7.1% drop in the past 24 hours. Despite a minor gain over the last week, the price continues to face pressure. ETH is trading below the 20-day moving average, a key short-term trend indicator closely monitored by traders.
Analyst Michaël van de Poppe highlighted that a sustained move above this average is necessary to shift momentum, a condition that has not yet been met.
"Given the recent rejection, we can assume that we're going to consolidate some more,"
This perspective suggests that Ethereum may continue to trade within a defined range unless there is a significant increase in buying pressure.
$2,500–$2,600 Support Zone Under Scrutiny
A significant area of interest is forming between $2,500 and $2,600. Recent price action has brought ETH close to this zone, which Van de Poppe identified as crucial for market participants looking to establish a base. He referred to this level as a potential signal of a market bottom.
This price range is also recognized on technical charts as an accumulation area. However, the market has not yet demonstrated strong demand within this zone. A breach below $2,500 could potentially lead to further short-term declines. The strength or weakness observed around this level is expected to significantly influence the next price movement.
Price Structure Reflects Ongoing Correction
According to analysis from More Crypto Online, the recent bounce from the November 21 low appears to have completed a three-wave move. This pattern is being interpreted as part of a larger corrective phase. Ethereum has since returned to a support zone identified between $2,720 and $2,852, which was previously designated as the primary area for the yellow B-wave.
At present, there has been no clear upward movement from this support level. The analysis indicates that a fifth wave to the downside remains a possibility, particularly if ETH drops below $2,720. The correction would remain valid within the broader wave 4 structure as long as the $2,720 level is not breached.
$3,000–$3,100 Resistance Still Capping the Upside
While the market is focused on establishing a base, attention is also directed towards the upside potential. The price range between $3,000 and $3,100 is currently acting as a resistance barrier, a level that has not been overcome in recent rallies. Van de Poppe described this area as a "crucial resistance zone to break through."
A sustained close above $3,100 could potentially alter market sentiment and pave the way for further gains. Until such a breakout occurs, traders are closely watching both the support and resistance levels. For bullish investors, maintaining the $2,500–$2,600 support is as critical as reclaiming the $3,000 level.