Ethereum's Ascent 'Hesitates' at Resistance Wall...Will it Reclaim the $2,400 Mark?

▲ Ethereum (ETH)

Ethereum has entered a price correction phase after failing to break past the $2,400 resistance line, and a fierce battle in the market is expected over the defense of key support levels.

According to crypto news outlet NewsBTC on April 22 (local time), Ethereum (ETH) showed strong upward momentum, breaking past $2,380, buoyed by Bitcoin (BTC)'s rebound. The price briefly surged to $2,424, forming a short-term high, but failed to overcome the thick selling wall above and turned downwards. Currently, Ethereum is consolidating above $2,350, taking a breather to secure its next upward impetus.

Analyst CasiTrades diagnosed that Ethereum is using the bullish trend line formed in the $2,320 range as its support base. The price is holding above the 100-hour simple moving average, defending against further declines. The analysis suggests that if the $2,300 support level breaks, the decline could extend to $2,265, which is the Fibonacci 61.8% retracement level. Whether the bulls successfully defend the $2,300 mark will be key to its short-term direction.

Upward resistance is immediately formed in the $2,385 range, with $2,400 and $2,420 being cited as major hurdles. Analyst Hov predicted that if Ethereum clearly breaks through the $2,420 resistance, a full-fledged rally will resume. If it successfully settles in this range, it will expand its gains beyond $2,440 to $2,500 and $2,550, setting the stage for exploring new highs.

Indicators from the derivatives market support an optimistic trend. Funding rates have turned positive for the first time in a week, recording 0.0031%, indicating a recovery in investors' buying sentiment. Open interest also increased by 440,000 ETH in recent hours, demonstrating strong interest from market participants. The liquidation of approximately $100 million in short positions over the past 24 hours, shifting the market sentiment to a buying advantage, is also positive.

Overall investor sentiment is improving due to the combined effect of U.S. President Donald Trump's extension of the U.S.-Iran ceasefire and expectations for an Ethereum spot ETF. However, many believe that additional trading volume is necessary to firmly establish above $2,400. Investors are closely watching whether the price stably maintains the key support level of $2,320 and reattempts to break resistance. The supply and demand situation and fundamentals of the Ethereum ecosystem still maintain a solid foundation.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*