Ethereum is trading at low levels after failing to reclaim the $2,500 mark, leaving the market uncertain about its next move. Analysts remain divided, with some calling for a continued drop as ETH’s price action remains unstable, while others see signs of a potential recovery forming at key support levels.

Top analyst Ali Martinez shared on-chain data from Glassnode, revealing that the number of Ethereum addresses holding more than 10,000 ETH has dropped to 919, down from 999 in late February. This suggests that whales have been selling heavily during the latest correction, likely driven by fear and liquidity issues. The capitulation of big players is often a bearish sign, signaling uncertainty among institutional investors and raising concerns about further downside risk.

Despite this wave of selling, Ethereum has held a key demand level around $2,200, suggesting that a potential reversal could be forming. If ETH manages to stabilize at this level, it could build momentum for a rebound in the coming weeks.

The next few weeks will be crucial for ETH’s price action. If bulls regain control, Ethereum could attempt another push toward $2,500 and beyond. However, failure to hold current levels could result in another leg down, extending its bearish phase and keeping traders on edge.

Price Action Details: Key Levels To Watch

Ethereum (ETH) is currently trading at $2,300, stuck in a range after failing to hold above $2,500 or break below $2,000. The market remains uncertain, with volatility swinging ETH’s price up and down, preventing a clear trend from forming.

For bulls to confirm a recovery rally, a push above the $2,500-$2,600 range is essential. Reclaiming this zone would signal strong buying momentum, potentially shifting sentiment back in favor of bulls. Without this move, Ethereum remains at risk of continued consolidation or another leg down.

However, for now, the main focus is on holding the $2,200 demand level. This key support zone has kept ETH from breaking lower, but if it fails, selling pressure could intensify, pushing Ethereum toward sub-$2,000 levels.

With market uncertainty still high, traders are watching whether ETH can stabilize above $2,200 or gain momentum toward higher resistance levels. Until Ethereum breaks out of its current range, volatility is expected to continue, keeping both bulls and bears cautious about the next major price move.

Featured image from Dall-E, chart from TradingView

Ethereum (ETH), the second-largest cryptocurrency by market cap, is flashing multiple bullish signals that suggest a potential upside move. However, rising exchange reserves are tempering this optimism.

Has Ethereum Formed A Local Bottom?

Ethereum has dropped nearly 20% over the past two weeks, falling from approximately $2,805 on February 23 to just above $2,200 at the time of writing. This decline has wiped out $80 billion from ETH’s market cap.

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Despite this sharp pullback, crypto analysts are pointing to several bullish indicators that could signal an impending price reversal. Crypto analyst Merlijn The Trader, for instance, has highlighted that ETH is following the Wyckoff Reaccumulation Pattern.

For those unfamiliar, the Wyckoff Reaccumulation Pattern is a technical analysis method developed by Richard Wyckoff. In the context of ETH’s current price action, this pattern suggests that the asset may be entering an accumulation phase before a potential upward movement.

The analyst further noted that the “spring phase” has just been triggered – indicating a possible bear trap where a brief dip below support levels misleads sellers, potentially setting the stage for a rally. A bounce from this level could see ETH climb to $4,000.

In a separate X post, Merlijn The Trader also pointed to a bullish divergence in Ethereum’s 4-hour chart. According to the analyst, ETH’s next immediate target is $2,700 before moving higher. Fellow crypto analyst CryptoGoos echoed these sentiments.

Beyond technical indicators, whale activity has added to the bullish sentiment surrounding ETH. In an X post, crypto analyst Ted noted:

Ethereum whale bought 17,855 ETH worth $36,000,000 at an average price of $2,054. Total holding $2,530,000,000 Ethereum. You think this is going down? Think again.

Rising Exchange Reserves May Spoil The Party

On the bearish side, crypto analyst Ali Martinez pointed out that ETH reserves on exchanges have been steadily rising. Over the past two weeks, more than 610,000 ETH has been transferred to exchanges, which could increase selling pressure.

Martinez’s analysis aligns with a recent report that found that despite ETH’s Relative Strength Index (RSI) being at a multi-year low, there could still be further downside in store for the digital currency.

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Indeed, ETH has been marred by significant bearish sentiment due to its relatively weak price performance over the past two years compared to cryptocurrencies like Bitcoin (BTC), Solana (SOL), and XRP.

However, extreme bearish sentiment could act as a contrarian signal, setting the stage for a surprise rally. At press time, ETH trades at $2,200, up 6% in the past 24 hours.

Featured image from Unsplash, charts from X and Tradingview.com