Ethereum (CRYPTO: ETH) is ranging around $2,400, with traders watching whether a bigger correction toward $1,800 could play out.
Why ETH Failed To Make A Higher High
Crypto trader CrediBULL Crypto said Tuesday that Ethereum initially produced a "decent reaction" from its local demand zone around $2,440, but the bounce failed to establish a higher high.
The subsequent decline broke below that demand area, putting a cluster of equal lows around $2,360 back in focus.
CrediBULL sees a potential silver lining if Ethereum sweeps those lows.
Taking out the downside liquidity now could make the next upside move more sustainable, he said.
Instead of first rallying toward $2,800 or higher and then suffering a larger correction, Ethereum may simply be getting that deeper pullback "out of the way now."
How Low Could Ethereum Go?
Heavily-followed trader, Crypto Patel also flagged further downside risk after ETH rejected the $2,550 to $2,660 resistance zone and retreated from its recent high.
Patel said failure to reclaim and sustain above $2,670 keeps his bearish scenario active.
He identified three potential downside levels, with $1,800 a key area to watch if the correction deepens.
The analyst, however, separated the short-term setup from his longer-term outlook, maintaining an eventual ETH target of $10,000 to $15,000.
Highlighting Ethereum’s strength, trader Lucky pointed to its wide lead in total value locked and DEX activity over rivals including Solana (CRYPTO: SOL), Base and BNB Chain.
"This is what 17+ years of dominance looks like," he said, citing Ethereum’s entrenched position across decentralized finance and on-chain trading.
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