Ethereum (ETH) has dropped nearly 10% in the past 24 hours, falling from $2,721 on February 24 to $2,313 earlier today. According to crypto analysts, $2,300 is the next critical support level – if ETH fails to hold this level, it could face further losses.

Ethereum Crashes Amid Crypto Market Sell-Off

The broader crypto market has endured a tumultuous 24 hours, shedding nearly 10% of its total market cap – approximately $300 billion in value. Amid the downturn, ETH’s market cap has plummeted from $340 billion to as low as $286 billion in just two days.

Crypto trader Merlijn The Trader shared their insights on ETH’s price action in an X post, noting that ETH is currently testing the 50-day Simple Moving Average (50 SMA) – a level they describe as the “make-or-break” zone for the asset.

The analyst emphasized the importance of ETH holding the $2,350 price level, warning that a breakdown below this level could get “ugly.” If Ethereum fails to maintain support, it could drop significantly, with the next major support level near $1,100.

Fellow crypto analyst Ali Martinez echoed Merlijn’s concerns, highlighting $2,300 as a crucial support level for ETH. According to the following 3-day chart, this level is near the bottom of the trading channel that ETH has been moving within since November 2024.

Meanwhile, Daan Crypto Trades pointed out that ETH has repeatedly failed to break through resistance at $2,800. They noted that after Bybit announced it would restore users’ ETH balances following the recent hack, ETH experienced a sell-off. They added:

This cycle, both $BTC & $ETH have reacted well around the .786 levels so I’m keeping an eye on this area here. BTC also just swept the range lows. The larger range between ~$2.1K-$2.8K remains the most important one. Anyways, currently just holding spot and not doing much.

Is The Altseason Dead?

ETH’s prolonged poor performance has cast doubt on the possibility of a full-blown altseason. For the uninitiated, altseason refers to a market phase where altcoins – cryptocurrencies other than Bitcoin (BTC) – deliver extraordinary returns in a short period.

While market sentiment surrounding ETH may be far from bullish at the moment, some industry leaders remain confident in a strong rebound for the leading smart contract platform.

In an X post, CryptoQuant CEO Ki Young Ju noted that there was no significant Ethereum selling pressure following the Bybit hack. He also suggested that favorable crypto regulations under US President Donald Trump could trigger a “large-cap ETF altseason,” potentially driving ETH’s price higher.

Similarly, crypto analyst Ted provided some optimism for altseason enthusiasts. Sharing the following weekly chart, Ted highlighted that the altcoin market cap has formed its first golden cross since Q1 2021. He added:

The last time this happened, Altcoin market cap pumped 500% in just a few months. It looks like altseason will soon become a reality. Do you bullieve?

That said, recent on-chain analysis does not inspire much confidence in ETH’s short-to-medium-term price action. At press time, ETH is trading at $2,418, down 9.5% in the past 24 hours.

Featured Image from Unsplash.com, Charts from X and TradingView.com

As the new week begins, Ethereum (ETH)—the second-largest cryptocurrency by market capitalization—has seen a significant decline, dropping nearly 10% below the critical support level of $2,500. 

However, amidst this downturn, prominent crypto analyst Doctor Profit has identified four compelling bullish indicators that suggest Ethereum may be poised for a resurgence, potentially inching closer to its all-time high and even surpassing it.

Key Indicators Signal A Bullish Turn

In a recent post on X (formerly Twitter), Doctor Profit shared insights from a detailed long-term analysis of Ethereum. He emphasizes that this evaluation is not about short-term hype or quick profits but focuses on the upcoming months. 

“Right now, ETH is the best opportunity in the market,” he stated, highlighting key indicators—technical, psychological, and on-chain—that support his bullish stance.

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Doctor Profit’s analysis is grounded in extensive price action data, with a focus on high-timeframe signals that typically indicate significant market moves. Here are the four major indicators he outlined:

The 200-week Exponential Moving Average (EMA) has historically served as a critical support level for Ethereum. During past market downturns, such as the COVID crash in 2020 and the bear market in 2022, the price has quickly rebounded after dipping below this key threshold.

Given that a few weeks ago, the price was merely 4% from this support, the risk-reward ratio for potential investment is compelling. Doctor Profit estimates a possible move toward the $8,000 to $10,000 range, representing an approximate 200% upside, while the worst-case scenario offers a mere 20% downside.

Doctor Profit Sees Potential For Major Ethereum Price Surge

The analyst further highlighted that ETH’s price has been trending within a long-term ascending channel, currently approaching its lower boundary—a historically favorable entry point for investors. 

Doctor Profit anticipates a breakout from this channel in the coming months, targeting the $4,000 mark, a level that has faced multiple rejections. 

However, the analyst assures that each failed attempt brings the Ethereum price closer to a definitive breakout, with potential targets reaching as high as $8,000 to $10,000.

One of the most significant patterns currently forming is the weekly ascending triangle. This pattern has been consolidating since 2020, indicating a robust bullish setup. 

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Doctor Profit notes that moves stemming from such patterns often lead to substantial price expansions, similar to recent trends observed in XRP. The implications of this formation suggest that Ethereum may be on the brink of a powerful upward movement.

A substantial liquidity zone exists around the $4,000 region, aligning perfectly with both the anticipated breakout from the ascending channel and the ascending triangle. 

This concentration of liquidity could facilitate a strong market response, according to the analyst, propelling Ethereum through this critical threshold and triggering a significant upward movement.

Despite the current bearish sentiment surrounding Ethereum, characterized by retail disinterest and high fear, Doctor Profit emphasizes that institutional accumulation is on the rise. 

Record inflows into Ethereum exchange-traded funds (ETFs) and significant on-chain withdrawals further indicate that larger investors are positioning themselves for future gains.

ETH is currently trading at $2,420, down as much as 10% over the past 24 hours and over the past week. 

Featured image from DALL-E, chart from TradingView.com

Investors’ sentiment and confidence in Ethereum, the second-largest digital asset appears to be improving in spite of recent troubling market developments that have hamper its market dynamics. Key metrics show a substantial accumulation of ETH, reflecting its position as a leading asset in the ongoing cycle.

Market Trends Changing As Ethereum CBD Decline?

Ethereum’s market dynamics are currently shifting even as the asset’s price struggles to recover crucial resistance levels. Leading on-chain data analytics and financial platform Glassnode points to a downward trend in Ethereum’s Cost Basis Distribution (CBD) metric amid fluctuating market performance.

A decrease in the cost basis distribution frequently indicates a broader change in the market’s dynamics or a rise in selling pressure. However, this is not the case for ETH right now.

According to the on-chain platform, the key metric shows that several cost bases have been moving lower, which suggests that investors have been accumulating ETH as prices have dropped. Key support for the accumulation zone is at the $2,632 level, while resistance is at the $3,149 level.

Data from Glassnode reveals that over 786,660 ETH were purchased by investors at the $2,632 support zone. Meanwhile, more than 1.2 million ETH were acquired by investors at the $3,149 resistance area. Such massive accumulation reflects investors’ strong sentiment and confidence in Ethereum’s future performance.

Glassnode noted that investors are averaging and buying ETH at lower prices rather than entirely selling their coins and exiting positions. Furthermore, a long-term conviction is reflected by the lowering cost basis, a similar trend has been observed in $MKR.

As Ethereum’s price faces heightened volatility, watching this trend is crucial as it could impact the altcoin’s trajectory in the upcoming weeks. During these uncertain periods, a large portion of ETH has been seen leaving cryptocurrency exchanges. 

Over the weekend, technical expert and Crypto Banter host Kyle Doops reported that there was a significant outflow of ETH, with netflow on derivative exchanges falling below 400,000 ETH. The number of net flows marks one of the largest in recent history.

Typically, such large withdrawals signal a potential bullish change up front and decrease selling pressure. With the altcoin trading below the $2,800 level, Kyle Doops underlined that market players may be preparing for an upward move as they wait for a change in sentiment.

A Rally To New All-Time High For ETH

After a prolonged period of weakness, ETH may be poised for a major rally to a new all-time high in the following weeks. Market technician Jonathan Carter foresees an upsurge to new levels due to a massive Ascending Triangle pattern on the weekly chart.

Ethereum is effectively holding its position above the multi-year trendline and the 100-day MA as it attempts to bounce from the ascending triangle support. Carter expects the upward momentum to push ETH’s price toward the next targets such as $3,200, $4,000, $4,850, $6,000, and $7,500.

Featured image from Unsplash, chart from Tradingview.com