Here’s Why Ethereum May Hold $2,400 This Week

Ethereum trades at $2,540 at the time of writing. Its current price suggests that the asset may be gearing up for a push at the $2,600 mark.

Ether may resume its uptrend as the crypto market sees further improvements. Data from Crypt0currenciestowatch shows that trading volume across the sector spiked by 18% in the last 24 hours. However, the second-largest coin is yet to see the effect as buying and selling have plummeted by 13%.

Data from Glassnode shows that traders remain hopeful amid the previous day’s selloffs that saw the asset retrace from $2,619 to $2,454. The platform noted that whales continued accumulating for almost a week. Accumulation exceeded 800k ETH daily, bringing holders with over 1k to more than 14 million. It goes without saying that this scale of buying hasn’t been seen since 2017.

Some of these purchases were made a few hours ago, with one whale scooping up over $7 million worth of the coin. Reports also claimed that BlackRock joined the buying frenzy, acquiring over $15 million worth of the asset.

The altcoin is seeing a notable increase in user participation. It ranked as the foremost chain with the highest increases in network growth (new addresses created) over the past week. Wrapped Ethereum saw a 600% surge. 

Ethereum is experiencing notable buying pressure amid the market selloff. However, investors are switching to risk-off strategies. The second-largest cryptocurrency reached a new staking milestone, with over 35 million ETH now locked in its Beacon Chain contract. This represents approximately 28% of its circulating supply. 

The chain contract saw more than 500k ETH staked in June alone. Addresses with no selling history are holding over 22 million ETH.

The milestone fuels more optimism about its next price action. The demand for exchange-traded funds has remained consistent over the last two days, with the asset registering notable inflows. 

Ethereum Must Hold $2,450

Trading action over the last seven days saw the largest altcoin retest a critical level. It rebounded off the $2,450 support more than twice during this period. Previous price movements suggest that the asset will retest $2,400 after losing the highlighted mark.

Nonetheless, the pivot point standard sheds more light on the implication of the bulls’ failure to hold this level. ETH may continue downwards until it rebounds at the pivot point around $2,356. The Fibonacci retracement supports this speculation as it highlights no support until the 50% fib level.

Conversely, sustaining the ongoing price trend will see the asset resume its uptrend. It is worth noting that the $2,400 mark served as the launchpad for the attempt to break the $2,900 resistance. The coin may see a repeat of this trend in the coming days. However, the coin may grapple with notable selling pressure around $2,700.

Nonetheless, other assets in the Ethereum ecosystem are experiencing notable selling pressure at the time of writing. Ethereum Classic retested its seven-day low a few hours ago, dropping to $16. It risks further decline below $15 if the selloffs continue. 

It is worth noting that the DEX volume picked up on Tuesday after a slow start on Monday. Trading on the decentralized exchange spiked by over 20% during this period and has since maintained the same trajectory. 

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