Ethereum Price Prediction after Rally Halts
Ethereum stalled after a recent rally, having trouble passing the $2,400 mark as the rest of the market continues to rise.
Quick overview
- Ethereum (ETH) dropped 1.07% for the week after failing to maintain recent gains, with current prices around $2,307.
- Despite a significant increase in trade volume, selling pressure has risen as investors fear further declines.
- Ethereum struggles to break the $2,400 resistance level, causing hesitation among short-term buyers.
- A recent whale purchase of over 26,000 ETH may provide some support, with predictions of potential market rallies ahead.
Ethereum (ETH) dropped 1.07% for the week after falling from a recent high, and now investors wait to see where it will go from here after the coin failed to hold onto recent gains.
Ethereum climbed to $2,374 (ETH/USD) on Sunday but then fell to $2,307 the next day. The coin attempted to pass the $2,400 mark but fell short, causing a loss of momentum and sinking investor sentiment.
ETH/USDThe crypto market rallied last week while the stock market hit fresh highs, but Ethereum stumbled at the start of this week. Meanwhile, much of the rest of the crypto market is bullish, with Bitcoin (BTC) gaining 0.52% on Monday and Solana (SOL) up 3.49% for the day. Other coins are moving upward quickly as well, but Ethereum is experiencing some pullback.
Selling Pressure Mounts for Ethereum
Ethereum’s trade volume jumped 97% on Monday, but the coin fell 0.83% for the day and lost most of its gains from last week. Ethereum selling pressure is suddenly high as investors fear that the coin may slip further from its position.
The $2,400 level has been tough for the coin to beat in recent weeks, and there is incredible resistance there that Ethereum bulls have not been able to overcome. The ETH price may solidify around $2,300 or $2,200 instead.
What makes Ethereum lose momentum when other crypto tokens are performing well? It could come down to the difficulty that the ETH rate has had with $2,400, and if investors think that the coin will fall as soon as it passes that mark, the short-term buyers will not hold onto their coins. They are likely to panic and sell off even when the market looks bullish.
Ethereum needs to prove it can move past that mark, and until it does, investors may be hesitant to give it a chance. The surge that other crypto tokens have experienced so far for Monday indicates that many buyers may be moving from Ethereum to one of the other tokens.
The ETH level could get a bump from a recent whale purchase. Bitmine bought up more than 26,000 ETH, and that brings their holdings to 5.2 million Ethereum. According to the company’s chairman Tom Lee, the cryptocurrency market is entering spring. That means that the market is likely to see new highs soon and Ethereum could rally quickly, according to Lee’s predictions.
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