Ethereum (ETH) Defends Key Support at $2,100 Amid Market Volatility

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is at a pivotal juncture as traders closely monitor key support and resistance levels.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is at a pivotal juncture as traders closely monitor key support and resistance levels. The asset has managed to hold above the $2,100 mark, but the crucial resistance at $2,460 remains a significant barrier that must be overcome for a bullish breakout.

After a turbulent period marked by market volatility, Ethereum has shown resilience in defending the $2,000 to $2,100 range. This persistent buying interest at these levels is evident in on-chain analysis, which shows a strong presence of buying activity in this critical support zone.

Analysts suggest that as long as ETH manages to stay above this zone, the possibility of a rebound remains relatively high. However, a decisive move below $2,000 could open the door for further downside potential, setting the stage for a bearish scenario.

Crypto trader Daan Crypto highlighted on X (formerly Twitter) that ETH has formed a higher low on lower timeframes, signaling early signs of recovery. The analyst stated that breaking through the $2,300 mark is a key milestone in regaining upward momentum.

A look at Ethereum’s daily trading chart indicates that while the asset is struggling to establish a strong upward trajectory, buyers are diligently protecting this critical support zone, preventing any significant further downside movements.

On-chain data reveals that at the $2,460 resistance level, approximately 10.95 million investors are holding a collective 64.52 million ETH. This zone has seen a substantial inflow of institutional funds, evident in the chart above.

As the price approaches this threshold from below, many traders could be inclined to exit their positions, setting the stage for a surge in selling pressure.

Breaking above this zone could quickly ignite bullish sentiment, pushing ETH toward higher levels. If Ethereum manages to breach this psychological barrier, traders anticipate a stronger price movement toward new highs.

Crypto analyst Ali also emphasized that ETH must maintain a position above $2,200 to sustain a positive outlook. The TD Sequential indicator on the weekly chart has flashed a buy signal, further suggesting that a rebound could be on the horizon.

At the time of writing, Ethereum is trading at $2,175, reflecting a 2% increase in the last 24 hours. However, market data also shows a significant decline in trading activity, with ETH’s 24-hour volume standing at $9.68 billion, a sharp drop of 44.63% in just one day.

Ethereum currently has a market capitalization of $265.39 billion, with a circulating supply of approximately 120 million ETH. The decline in trading activity suggests that investors are awaiting a decisive move before re-entering the market in full force.

Despite the recent slowdown, institutional investors appear to be accumulating ETH, signaling long-term confidence in the asset. According to on-chain analytics from CryptoQuant, ETH inflows into accumulation addresses have reached multi-year highs.

This trend is reminiscent of previous accumulation phases that coincided with a bottom in the market and were later followed by substantial price surges. The increasing interest from institutional players could bode well for future price gains, especially as Ethereum’s network upgrades and adoption continue.

Some analysts have set ambitious price targets, predicting that ETH could reach $9,000 by the end of the year, based on historical price trends and broader market developments. However, it’s crucial to note that such high price predictions are often made with a long-term perspective.