Ethereum, the second largest cryptocurrency by market capitalization, has revealed a crucial demand zone amid a death cross formation.
According to Ali Martinez, a crypto analyst, the most important support level for Ethereum is between $2,314 and $2,435. This range is particularly noteworthy as it represents where nearly 2.14 million addresses have collectively acquired 51.67 million ETH.
The most important support level for #Ethereum is between $2,314 and $2,435, where 2.14 million addresses acquired 51.67 million $ETH! pic.twitter.com/1h1G2ZcZHd
— Ali (@ali_charts) August 9, 2024
The death cross, a technical analysis pattern that indicates potential bearish momentum, emerges when a short-term moving average crosses below a long-term moving average. In the case of Ethereum, the 50-day SMA crossed below the 200-day SMA, resulting in a death cross on the Ethereum daily charts.
At the time of writing, ETH was trading in the green at $2,595. Two potential scenarios are likely for the Ethereum price in light of the crucial demand zone highlighted. First, it signals the possibility of strong buying activity, which might keep Ethereum from falling further in the event of a price drop. However, if this support level fails to hold, Ethereum may experience a deeper fall, potentially revisiting lower price levels.
Ethereum price jumps
Ethereum, the second largest cryptocurrency by market capitalization, hit a high of $2,708 in Friday’s trading session as the crypto market continued to regain ground lost in Monday’s slump.
After jobs data last Friday raised fears that the U.S. economy was entering a recession, sparking a Wall Street sell-off, digital assets began the week on a sour note. On Monday, the Japanese yen surged against the U.S. dollar, spurring a bout of risk aversion.
However, concerns about the U.S. economy seemed alleviated in the time being after statistics released Thursday showed that unemployment benefit filings fell from the previous week.
Ethereum’s price is currently up 3.05% on the day, according to CoinMarketCap, although it is still down roughly 18% for the week.