Ethereum Targets $2.4K Reassessment – Analyst Identifies Crucial Levels to Monitor

After several days of substantial buying activity and strong bullish momentum, Ethereum has halted its upward trend, encountering resistance near the $2,740 level. This pause follows a period where ETH easily surpassed significant resistance points at $2,000 and $2,200, showcasing one of its most impressive performances in recent months. As enthusiasm grows across the broader cryptocurrency landscape, Ethereum’s upcoming actions could determine the robustness and longevity of this breakout.

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With prices stalling, analysts suggest a phase of consolidation is likely—and perhaps necessary—before any further upward movement. A leading analyst has highlighted that the $2,400 mark will be pivotal in the upcoming days. There is a belief that retesting this local support could create a healthier framework for future gains.

Additionally, caution flags have been raised by the same analyst over the exceptionally high levels of Open Interest within the ETH derivatives market. He is currently avoiding long positions until some of that leverage is cleared, mitigating the risk of a more significant price drop. Ethereum bulls must now maintain levels above $2,400 to solidify their strength and sustain the uptrend, as traders look for clearer conditions for potential re-entry.

Ethereum’s Rally Encounters a Key Retest at $2.4K

Ethereum has surged over 50% since the previous week, regaining momentum after enduring several months of selling pressure. This sustained strength marks a significant recovery for ETH since late December, fueling optimism that other altcoins could follow suit. Many analysts are predicting an altcoin season, with Ethereum’s rally potentially acting as a catalyst for broader movements in other underperforming altcoins.

Nonetheless, following such a steep ascent, a period of consolidation or correction could be expected—and might even be beneficial. Analysts emphasize that the $2,400 mark will act as a crucial support zone. The expectation is for the price to test this area prior to any further increases. They currently have no intention of entering long positions until some of the millions in Open Interest have exited the market. How Ethereum behaves around the $2.4K mark is likely to influence the next phase of its trajectory.

If ETH touches the $2.4K mark and rebounds, the expectation is for a local trading range to form between $2.4K and $2.7K. However, if the price decisively falls below this level, the next significant support will be found at $2.1K. A gradual decline into that area might indicate weakness, while a sharp drop could present a fleeting buying opportunity.

Despite short-term uncertainties, even if there’s a pullback to $2.1K, it would still indicate an approximate 20% increase for ETH from the previous week. In the analyst’s view, the larger trading range is currently between $2.1K and $2.8K—a zone that could dictate Ethereum’s next significant trend if the bulls can maintain crucial levels and regain momentum. The rally is still ongoing, but the next challenge will be essential.

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