Ethereum is currently grappling with a critical resistance level at $2,880, a point that is testing the resolve of the market. The cryptocurrency has demonstrated early signs of bullish momentum, but it remains at a significant crossroads, facing a clear resistance level that must be overcome to sustain upward movement.
According to Lennaert Snyder on X, Ethereum printed a low, a higher low, a high, and a higher high on the 4-hour chart, signaling the first signs of a potential reversal.
However, the resistance at $2,880 is pivotal. Snyder noted that if Ethereum experiences a rejection at this level, a short position targeting a subsequent failure is likely. Conversely, reclaiming this level could trigger pushes toward the $3,200 resistance zone.
The $2,580 daily demand zone remains a crucial support area to monitor for potential long entries following any reversals.
Institutional Interest Indicated by Large Buy Signals
Adding to the momentum, Bitmine made a significant purchase of 21,537 ETH, valued at $59.17 million, confirmed by wallet activity reported on X by cryptorover.
This substantial acquisition indicates continued institutional confidence amidst Ethereum's current price consolidation phase. This inflow demonstrates Bitmine's aggressive accumulation strategy.
Currently, ETH is trading at $2,834.47, showing a 4.36% increase over the past 24 hours with a market capitalization of $342 billion. However, the trading volume has slowed by 45.57%.
On-chain data highlights that large holders control nearly 40% of Ethereum's supply, emphasizing the significant impact of such large-scale purchases on market dynamics. This accumulation could influence the trajectory of both ETH/USD and ETH/BTC pairs, potentially supporting sustained bullish momentum.
Technical Outlook and Market Sentiment
Ethereum's resistance around the $2,880 mark aligns with a multi-week supply zone and key technical indicators, including the 20-day Exponential Moving Average (EMA) and volume peaks observed in recent trading sessions.
A decisive break above this level could lead to targets near $3,000 and potentially extend to $3,220, which represent resistance levels established in June 2024.
Conversely, if Ethereum fails to hold above this resistance, lower levels such as $2,613 and $2,580 will become vital support zones to watch.
Market analysts on X suggest a watchful stance, emphasizing that maintaining a position above $2,880 is essential for sustaining bullish momentum. A rejection at this level might signal the onset of a pullback.
The combination of institutional buying activity and emerging technical signals underscores Ethereum's current positioning at a critical juncture in the market. Ultimately, ETH's ability to break and hold above $2,880 could dictate the next significant market move, potentially initiating a fresh rally or signaling a corrective phase.