Ethereum’s Critical Juncture: Can ETH Break Through $2,300 Resistance?

Ethereum (ETH) has seen a considerable price drop recently, shedding 17% in the last month. This downturn has brought key resistance levels into sharp focus, potentially acting as make-or-break points for the second-largest cryptocurrency. Will ETH bounce back, or is further decline on the horizon?

A Pivotal Resistance: $2,300

Crypto analyst Ali Martinez pinpoints $2,100 as a necessary hurdle for a new upward trend. However, he emphasizes the $2,300 mark as a more critical resistance level. Breaking through this level would signal a bullish reversal. Failure to do so, according to Martinez’s analysis (based on the daily chart), could trigger a further slide, potentially towards $1,600 and even $1,155, representing substantial additional losses.

Resistance Wall and On-Chain Data

Martinez also highlights a significant resistance wall between $2,200 and $2,580. IntoTheBlock’s on-chain data reveals that 12.43 million investors hold approximately 66.18 million ETH within this range. Breaking through this wall could ignite bullish momentum, yet the catalysts for such a move remain scarce, according to experts.

Accumulation Zone Under Pressure

Glassnode’s Cost Basis Distribution highlights limited support near current ETH prices. Many investors are reportedly selling at a loss, increasing market uncertainty. The disappearance of several large ETH clusters with cost bases between $2,000 and $2,050 suggests higher-cost holders are attempting to average down, yet Glassnode notes that the overall accumulation zone is limited, raising concerns about future price stabilization. The largest accumulation zone below the current price sits at $1,537, which may serve as short-term support if the downtrend persists.

Current Market Situation

ETH is currently trading at approximately $1,830, down 12% for the week. The coming days will be crucial in determining whether Ethereum can overcome the formidable resistance levels and reverse its current downward trend or if a further decline is inevitable.