Ethereum briefly lost the $2,000 support level as the trading volume of the cryptocurrency jumped 148%.
Ethereum ETH $1 780 24h volatility: 5.7% Market cap: $214.67 B Vol. 24h: $25.28 B , the second-largest digital asset with a massive valuation of $255 billion, dropped briefly below the crucial $2,000 price level after a 1.22% price decline in the past 24 hours.
According to CoinMarketCap, the market leader trades at $2,113.09 at press time, suggesting intense demand below $2,000 with a 148.13% increase in the trading volume.
Notably, despite the announcement from United States President Donald Trump regarding a US crypto reserve that will include Bitcoin (BTC) and ETH as its “heart,” there is no significant bullish momentum for the crypto space.
Trump’s reserve will not include any new purchases but only the tokens that the government already holds, seized from various sources over the years.
18% Price Move?
According to prominent crypto analyst Ali Martinez on X (formerly Twitter), Ethereum is gearing up for an 18% price move. He highlighted that the cryptocurrency is consolidating within a descending triangle, a pattern that usually signals a continuation of the existing trend, which in this case has been bearish.
The horizontal support around $2,000 is a crucial support level to watch. A confirmed breakdown below this could trigger a sharp drop, potentially testing $1,900 or even $1,875 as the next downside targets.
However, if ETH manages to break above the descending trendline resistance near $2,150-$2,200, it could invalidate the bearish setup, leading to a potential short squeeze toward $2,300-$2,400.
It is important to note that ETH’s brief fall below $2,000 in the past day was a result of $230 million in ETH long positions being liquidated on Sunday.
However, despite the prevailing bearish circumstances, Martinez highlighted that a whopping 600,000 Ether tokens were withdrawn from crypto exchanges in the past week, providing investors with an optimistic outlook amid an uncertain market.
Ethereum Price Analysis
The daily chart provided by TradingView below shows that the Relative Strength Index (RSI) for the Ethereum price action reads a value of 37.95, which means that the bears are overall in control. The gradient of the line suggests increased chances of a retest of the 20-day Exponential Moving Average (EMA) at $2,338.
On the other hand, the MACD indicator shows that the signal line (orange) is above the MACD line (blue), which means that the sellers are dominating. Meanwhile, the histogram is also red.
However, if the blue line breaks above the signal line, a bullish crossover could be seen, which could be in line with Ethereum reclaiming the 20-day EMA.
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