-
Ethereum faces a potential price drop as it nears a significant support level of $2,345, which could have major implications for investors.
-
Over 2 million Ethereum addresses holding a total of approximately 58.88 million ETH could enter a loss zone if the price slips below this key threshold.
-
“A break below $2,345 could push 2.03 million ETH addresses into losses,” noted a recent report from COINOTAG, emphasizing the potential market volatility.
The critical support level of $2,345 for Ethereum could trigger significant selling pressure as millions of investors face potential losses; here’s what to watch next.
Understanding Ethereum’s Key Support and Resistance Levels
Ethereum’s current price action is indicative of a delicate balancing act between support and resistance. Recently, the asset has seen a bounce from a low of $2,300, yet remains trapped below crucial moving averages that signal a bearish outlook in the short-term. The 50-day Moving Average (MA) is positioned at $2,678 while the 200-day MA is higher at $3,271.
Currently, Ethereum faces immediate resistance at around $2,400, with a stronger boundary seen at $2,500. A movement beyond these levels would require a significant bullish momentum to shift market sentiment positively.
Source: TradingView
Conversely, if Ethereum breaches the pivotal $2,345 support level, it may enter a precarious zone, with the next substantial support resting around $2,250. A fall below this could exacerbate selling pressures, pushing prices further down toward the $2,100-$2,150 range.
On-Chain Metrics Indicate Ethereum’s Vulnerability
Insights from IntoTheBlock suggest that although over 82.76% of Ethereum holders are currently profitable at these price levels, a decline beneath $2,345 would severely alter that landscape. Notable is the fact that more than 17.14% of addresses now hold 13.14 million ETH that are already underwater, with further drops likely to add to this number.
Furthermore, data from Glassnode highlights a concerning downward trend in the creation of new Ethereum addresses. After hitting over 150,000 daily new addresses at the start of January, this figure has plummeted to below 100,000—indicating diminished network activity and a potential decrease in demand for Ethereum.
Source: Glassnode
Market Sentiment and Upcoming Potential Scenarios for Ethereum
As of now, the MACD indicator remains firmly in negative territory, suggesting continued bearish market conditions. Nevertheless, with an Average Daily Range (ADR) sitting at 132.92, price volatility could determine ETH’s next directional swing significantly.
For Ethereum to establish a recovery, market participants must show up as buyers at the $2,345 support level and push prices above the immediate overhead resistance. If successful, a reversal could then target around $2,500 and beyond.
However, should selling pressure become more pronounced, ETH could break under this level, opening up substantial downside risks.
Conclusion
As Ethereum approaches a crucial price level, the ensuing trading sessions are vital for determining its direction. A break below $2,345 might catalyze a sharper decline, while maintaining above this threshold could encourage a short-term recovery. Investors are encouraged to closely monitor on-chain activity, market sentiment, and key technical levels to better predict ETH’s next moves.
