The momentum build-up for spot Bitcoin (BTC) exchange-traded funds (ETFs) and the hype surrounding the same financial instrument heading towards Ethereum (ETH) have calmed. Now, we are seeing the market possibly going to a pullback all the way down to $2,000.
ETH’s Key Support Could Drop within the $2,000 Range
A couple of hours ago, the prominent crypto analyst with the alias Ali (@ali_charts) on X warned that ETH is hovering at a key demand zone between $2,388 and $2,460. He believes that if the prices stay within that territory, the second-largest cryptocurrency by market cap might head toward an uptrend. On the other hand, its failure to hold the line may drive it down to a new support area of around $2,000.
As a side note, the demand zone is a critical phase in the market where the demand for a commodity, such as crypto in this case, surpasses the supply. This instance results in an uptrend in the pricing of the asset.
Ethereum Now
As of this writing at 3:00 PM UTC, Ethereum is trading at $2,361, which indicates a decline of 4.67% on the 24-hour chart. In the same span, trading volume is significantly up by 108.30% as $9.74 billion worth of ETH moved along wallet addresses. This indicates a possible high selling pressure on the crypto as it traded between a low of $2,361 to a high of $2,479 based on on-chain data.
Zooming out the graphs also shows more than a 5% drop in the price of ETH over the week. Meanwhile, it is barely in green on the monthly frame as it tries to maintain its 1% gain. Despite these, the digital asset’s valuation remains at a level not seen since May 2022.
The present numbers have notably been a bit under the forecast of Ali, so we should prepare to brace ourselves for a possible realization of the analyst’s bearish outlook. On the other hand, if by some miracle that ETH still manages to break the mentioned demand zone, then we may be looking at the bulls’ charge to the $2,717 and $2,900 marks. This may position the coin closer to the $3,000 psychological barrier it lost back in April 2022.
Dencun Upgrade
There are, however, two known events that may possibly impact Ethereum this year. One is the Bitcoin halving in April and the other is the Dencun upgrade expected as early as March.
Should the hype undermine the technical charts when mass trading for these crucial events triggers around the Super Bowl 2024 period, we might see ETH pumping to a new high for 2024.