Here’s Why Ethereum Price Must Hold $2,800

In the last two months, the Ethereum price showed a steady correction from $4,100 to $2,870, registering a loss of 30%.

The crypto market experienced high volatility on Monday as speculation arose regarding the Trump administration's new tariff policy. Consequently, the Bitcoin price briefly dropped to $91,500 before recovering to $101,600, while the Ethereum price fell to $2,100 before rising back above the $2,800 level.

The resilience of these assets bodes well for a potential bullish reversal and further market recovery.

Key Highlights:

Why Ethereum Price Must Hold $2,800 Level

Over the past two months, the Ethereum price has undergone a gradual correction from $4,100 to $2,870, registering a loss of 30%. Sell-the-bounce sentiment remained evident among market participants, as indicated by the formation of lower highs on the daily chart.

However, ETH's sustainability above the $2,800 level, as seen in the recent market fluctuation, is highlighted by a long-tail rejection candle. At press time, Ether price experienced a minimal intraday gain of 0.5%, trading at $2,850. Meanwhile, the asset boasts a market cap of $345 Billion and 24-hours trading volume of $90 Billion.

An analysis of the daily chart reveals the significance of the $2,800 level as the base support for the right shoulder in an Inverse Head and Shoulders (H&S) pattern. The formation of the InH&S pattern consists of three key troughs: the left shoulder, a deeper head, and the right shoulder.

If the $2,800 level holds, we can expect the Ethereum price to bounce 44% and challenge the neckline resistance of $4,100.

During this anticipated rally, resistance at $3,500, followed by $3,700, could provide temporary hurdles.

Technical Indicator

Exponential Moving Average: The daily EMAs (20, 50, 100, and 200), including its trajectory downwards, indicate the increasing bearish sentiment in the market. A death crossover between the 50-and-200-day EMA could accelerate the selling pressure.

Relative Strength Index: The daily RSI slope at 35% accentuates the intact bearish momentum in price movement.

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