Ethereum Enters Critical Zone Below $2,500

Ethereum has entered a phase where both further gains and a pullback are possible as it trades below $2,500 after rebounding from its $1,500 low.

CryptoPotato notes that Ethereum's ability to hold the $2,100 support level could allow the broader uptrend to continue. A decline in Ether holdings on exchanges has also reduced the amount of supply potentially available for sale.

However, a break above $2,500 could strengthen the rally, while a drop below $2,400 could lead to a deeper correction. The Relative Strength Index (RSI) has moved back below the overbought threshold, raising the possibility of sideways trading or a deeper correction before fresh buying emerges.

The daily chart shows that Ethereum has repeatedly attempted to break above the top of its range near $2,500, but selling pressure has blocked those moves. On the four-hour chart, repeated selling has appeared near $2,500, while buying interest has come in at the lower end of the range.