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- Ethereum struggles near key support levels, with a potential reversal or further downside on the horizon.
- Surpassing $2434 is crucial to avoid a decline below the $2300-$2400 range and prevent further losses.
- Prolonged consolidation suggests Ethereum may be gearing up for a breakout, supported by strong ETF inflows.
Ethereum continues to struggle with vital areas of support, and market analysts are closely monitoring developments that may indicate a possible reversal. The cryptocurrency has been absorbing liquidity out of the lows, which increases the risk of any potential downside continuation in the short term.
Analyst Daan Crypto Trades highlighted that Ethereum has already removed a significant amount of liquidity at lower price points. He opined that ETH is currently close to the bottom of its trading range, and to reverse, it would have to gain more by surpassing the low of last Friday ($2434).
When the price does not overcome this mark, Daan cautioned that the crypto could experience downfalls. The $2300, 2400 price band is a crucial level, and there would be enormous inefficiency below it that could continue to drive a further drop in the case of Ethereum persisting its losses. As of press time, ETH is trading at $2,401 with a decrease of 0.74% in the 24 hours and 4.32% down in the past 7 days.
Source: X
Ethereum Approaches Critical Support
Analyst DD revealed that ETH is slowly approaching the bottom of its trading range. Ethereum is being traded at less than the Value Area Low, which is a very significant reference point in the market. Although the price has not reached its long-term objective, ETH is on the verge of what he called extreme discount territory. He warned that this is not the best time to take new short positions because the price is swinging towards the lows. DD will move to long positions once Ethereum falls to the lower end of the range because there is a possibility of a bounce back.
Source: X
Analyst Michael van de Poppe noted that Ethereum has been soaking up the liquidity across levels, which may act as an indication that the market is gearing up towards turning around the price. After over one month, analysts are anticipating Ethereum continuing its sideways trend. He said that this is usually a period leading up to big breakouts. In June, Ethereum had more ETF inflows of up to $1 billion, a positive indication of institutional interest, which may soon support ETH.
Source: X
The market of Ethereum has reached a decisive stage, and these days will be critical. Analysts will be watching closely the reaction of ETH to its present supports, and we could witness a big price change either upwards or downwards.
