After a significant rally last week, Ethereum’s native token, ETH, has seen a downturn, approaching the $3,000 support level. This decline followed the cryptocurrency’s failure to break through the crucial $3,400 resistance zone, leading to a 12% fall from its recent peak. Currently, ETH is trading at $3,112, showing a 4.40% decrease over the past week and a 1.45% fall in the last 24 hours.
Moreover, the 24-hour trading volume for the altcoin is at $28.45 billion, a 21.31% reduction, indicating that traders are taking profits as they wait for clearer signs of recovery. Despite the short-term downward trend, Ethereum maintains a strong market cap of 374.78 billion and a solid volume-to-market cap ratio of 7.69%.
These figures demonstrate continued investor confidence and interest in the Ethereum ecosystem, despite short-term market fluctuations. Notably, Ethereum’s recent market performance diverges from the overall cryptocurrency market, which has seen a marginal 0.52% increase in market capitalization.
Meanwhile, Bitcoin has been setting the pace in market momentum, hitting a new high of $94,002 during late trading in New York, contributing to a bullish outlook across the cryptocurrency sector. The pressing question now is whether ETH can build enough momentum to break the 3,400 resistance level or if this barrier will keep limiting its rally.
Ethereum’s Demand Zone Showcases Market Resilience
Recent trends highlight a momentum boost within the Ethereum ecosystem, with U.S. spot ETH ETFs drawing $147 million in cumulative net inflows over the last two weeks. This significant inflow reflects growing institutional interest in Ethereum as a key investment, driven by expectations of widespread adoption globally.
Adding to the positive outlook, Ethereum has formed a solid demand zone around the 3,000 mark. This accumulation not only underscores the importance of 3,000 as a vital support level but also supports optimistic Ethereum Price Prediction analyses, which suggest that breaking above $3,400 could open the door to further gains.
Critical Levels for ETH to Monitor
Ethereum’s established demand zones and ongoing accumulation by long-term holders highlight the significance of the $3,000 support level. Maintaining this level will be crucial for determining ETH’s short-term direction. If Ethereum can break above the $3,200 resistance, it could be on its way to challenging the significant $3,400 barrier again. This time, a consistent positive trading volume might provide Ethereum with the push it needs to overcome this resistance.
A decisive move above $3,400 could trigger a rally towards higher targets, with potential stops at $3,570 and $3,900. Conversely, if Ethereum falls below the $3,000 support, it could retreat to the $2,800 level for another round of consolidation. This scenario could set the stage for a new wave of accumulation, priming the token for its next upward journey.
