Ethereum (ETH) is sitting at a crossroads that, according to a popular analyst, could define the next major chapter for the second-largest cryptocurrency.<\/p>\n
That call landed as the asset slipped almost 4% in 24 hours, failing at the $2,400 range while facing growing pressure from short sellers betting against a near-term recovery.<\/p>\n
Crypto analyst EGRAG CRYPTO posted<\/a> a detailed breakdown on X on Thursday, arguing that ETH has spent a significant period compressing inside what he describes as a \u201cmassive Ascending Triangle structure\u201d on the weekly timeframe.<\/p>\n The asset has continued to respect what he calls the macro \u201cETH Line,\u201d a long-standing support level that has anchored the chart for years.<\/p>\n The setup is binary, at least in the near term, since a breakdown from the current structure points toward $1,600, which EGRAG labeled the \u201cstructural failure zone,\u201d while a successful breakout would target $4,800 at the initial trigger level.<\/p>\n They also floated a much larger upside target of $33,000 if euphoric market conditions return, though their near-term focus stayed on the fight between support and resistance.<\/p>\n \u201c$4,800 = breakout trigger. $1,600 = structural failure zone. ETH is approaching decision time,\u201d they wrote.<\/p>\n The market right now is in an uncomfortable holding pattern. Fellow trader Ted Pillows posted that ETH has repeatedly failed<\/a> to hold above $2,400, and that spot demand was still weak.<\/p>\n \u201cUntil that changes, ETH will continue to underperform the market,\u201d he claimed.<\/p>\n That assessment matches up with on-chain positioning data shared by analyst CW8900 earlier today, who noted<\/a> that high-leveraged long positions have decreased noticeably while short interest has risen slightly.<\/p>\n According to them, there\u2019s a cluster of short positions sitting between current prices and $2,500, with a clean break above that level having the potential to trigger a quick move toward $3,000.<\/p>\n There are other supporting signals outside the chart that suggest ETH\u2019s weakness may be temporary.<\/p>\n For example, a CryptoOnchain report from Tuesday noted a sharp rise in Ethereum staking inflows, with the seven-day average going<\/a> from around 28,200 to nearly 144,000 by May 5, removing more ETH from liquid circulation and possibly reducing selling pressure in case demand holds steady.<\/p>\n Elsewhere, analyst Ali Martinez pointed out that ETH had rallied more than 30% since a SuperTrend buy signal flashed in mid-March.<\/p>\n That move brought the asset to its Realized Price, sitting around $2,380, which represents the average value at which all tokens last moved on-chain. Breaking and holding above it would shift most ETH holders from being underwater to being in profit, which on past occasions became a point where selling pressure softened.<\/p>\n Further, he identified $2,772 and $2,921 as the next meaningful supply concentrations above that level.<\/p>\n After briefly touching<\/a> $2,400 yesterday, Ethereum had dropped back closer to $2,300 at the time of writing. But the drop notwithstanding, it\u2019s still up about 11% over the past month and roughly 27% on the year.<\/p>\n The post Ethereum Nears Critical Breakout Point as Analyst Eyes $1.6K or $4.8K Move<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Ethereum (ETH) is sitting at a crossroads that, according to a popular analyst, could define the next major chapter for the second-largest cryptocurrency. That call landed as the asset slipped almost 4% in 24 hours, failing at the $2,400 range while facing growing pressure from short sellers betting against a near-term recovery. What the Weekly […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-162381","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/162381"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=162381"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/162381\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=162381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=162381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=162381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Why the Backdrop Is More Bullish Than Price Suggests<\/h2>\n