Ethereum Eyes Key Decision Area –  Is $2000 Incoming?

All crypto assets have suffered the bear market this year, and Ethereum is still battling with the situation. According to analysts, the coin may be approaching a major 200 exponential moving average (EMA) area that could be the defining moment for its future.

According to crypto analysis platform CryptoPulse, Ethereum’s slowing momentum is responsible for the price approaching retest of this key level around $2,604. They add that a strong bounce from this level could maintain the largely positive structure, but a breakdown could trigger a drop as low as $2,000.

How Long will Ethereum Hold Structure For?

Ethereum attempted to reclaim the $3,000 price level but failed to hold it, thus breaking down to $2,900. Since the failure, analysts say the price needs to reclaim the $3,000 fast or it could drop further to the $2,700 – $2,800 level which has been a strong support. Now, CryptoPulse thinks Ethereum  may drop below this level to the lower 200 EMA.

At the moment, the price is nicely holding above $2,900, which means it still has a window period to reclaim $3,000 before it’s too late. However if it doesn’t reclaim this level early, the momentum may grow weaker, causing a further dip resulting in the 200 EMA retest.

This weak price momentum is contrary to Ethereum’s fundamentals which have been growing stronger. There have also been huge inflows into Ethereum exchange traded funds (ETFs) recently, which ordinarily should lead to price rallies. Analysts say this weak momentum could be due to a change in investor approach and not driven by fear.

If the weakness persists, it could only be a matter of time before the price breaks down to retest the 200 EMA as predicted. Meanwhile, Bitcoin has displayed a similar weakness which is also contrary to fundamentals as everything suggests the market should be in a rally like the other assets such as gold and silver.

Other Assets Show Similar Patterns to Ethereum

The inability of Ethereum to hold above $3,000 and maintain an upward momentum is a sign of major weakness. However, the trend isn’t exclusive to Ethereum, as other assets have shown a similar pattern.

Solana, which has seen consistent ETF inflow since their launch, has struggled in price performance. XRP has also shown the same thing, with no sustained upward move despite large ETF inflow.

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