Following last week’s rally, Ethereum’s native token ETH encountered a market correction, falling towards the $3,000 support level. This slowdown emerged after the cryptocurrency failed to breach the critical $3,400 resistance zone, leading to a 12% decline from its recent highs. At press time, ETH was trading at $3,112, reflecting a decline of 4.40% over the past week and 1.45% over the past 24 hours.
Additionally, the altcoin’s 24-hour trading volume stands at $28.45 billion, down 21.31%, implying profit-taking activity as traders wait for signs more obvious recovery. Despite the short-term bearish sentiment, Ethereum maintains a solid market cap of $374.78 billion, with a healthy volume-to-market cap ratio of 7.69%.
These metrics suggest strong investor confidence and continued interest in the Ethereum ecosystem, even amid short-term volatility. Interestingly, the token’s recent performance diverges from that of the broader cryptocurrency market, which saw a slight 0.52% increase in market capitalization.
Likewise, Bitcoin continues to dominate market dynamics, hitting a new high of $94,002 in late New York trading, setting the tone for a bullish outlook across the sector. The key question is whether the ETH cryptocurrency can gain enough momentum to overcome the $3,400 resistance level or whether this ceiling will continue to hamper its rally.
ETH Demand Zone Signals Resilience in Crypto Market
Recent data highlights a surge in momentum within the Ethereum ecosystem, with US spot ETH ETFs attracting $147 million in cumulative net inflows over the past two weeks. This massive influx reflects growing institutional interest in the altcoin as a critical investment asset, bolstered by growing expectations of wider adoption in global markets.
Place #Ethereum $ETH ETFs have seen a substantial change over the past two weeks, with a cumulative total net inflow of over $147 million! pic.twitter.com/mAYU1Bid2V
– Ali (@ali_charts) November 19, 2024
Adding to the bullish sentiment, the ETH token has established a strong demand zone around the $3,000 level. This accumulation not only reinforces $3,000 as a critical support level but also aligns with bullish trends. Ethereum Price Prediction analyses, suggesting that a break above $3,400 could pave the way for further gains.
Even though ETH ETFs have faced intermittent periods of selling pressure (indicated by the red bars in the net flow charts), the overall trend remains positive, with green bars dominating recent activity. This highlights sustained confidence in Ethereum’s long-term value proposition despite short-term market fluctuations.
Key Levels to Watch for ETH
Ethereum’s areas of strong demand and continued accumulation by long-term holders have reinforced the $3,000 level as key support. This threshold remains critical to monitor, as its stability will likely dictate ETH’s near-term trajectory. On the positive side, a successful break above the $3,200 resistance level could propel the cryptocurrency towards a retest of the crucial $3,400 barrier. Unlike the previous rally, sustained positive trading volume could give Ethereum the momentum needed to break through this resistance.
Additionally, a decisive break above $3,400 could pave the way for a rally to higher highs, with targets set at $3,570 and $3,900. On the other hand, if the $3,000 support gives way, Ethereum could experience a retracement towards the $2,800 level, where another phase of consolidation could take place. This safety net could provide a basis for further accumulation before the token attempts another upward move.
Read also: Is Bitcoin ready to surpass $100,000? Key Levels to Watch Now