Ethereum Price Dip: Key Support at $2,400?
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Ethereum's price, after a strong May surge exceeding 35%, has recently struggled to maintain its momentum above $2,500. While briefly recovering from a dip below this psychological level, the price ended the week lower. Crypto analyst Ali Martinez, using on-chain data from Sentora (formerly IntoTheBlock), highlights a crucial support zone for ETH between $2,354 and $2,430. This zone represents a significant number of addresses (2.64 million) holding 63.9 million ETH tokens, purchased at an average price of $2,395. The analyst's cost-basis analysis suggests that this concentration of investors' cost bases in this range could act as a strong support level. If the price approaches $2,400, these investors are likely to buy more ETH to defend their positions, counteracting downward pressure. The chart analysis indicates clear skies ahead for ETH with no significant resistance, but the crucial factor is maintaining the $2,400 level. Failure to do so could lead to a further price drop to as low as $2,200. Currently, ETH trades around $2,480, showing a slight increase over the past 24 hours but a weekly decline of approximately 4%. This analysis emphasizes the importance of the $2,400 support level for Ethereum's short-term price trajectory, balancing the recent bullish momentum with potential downside risks.
(Source: https://www.newsbtc.com/news/ethereum-price-struggles-to-hold-above-2500/)
