Ethereum eyes $2,300 resistance as key to trend reversal

Ethereum (CRYPTO:ETH) has faced a sharp 17% price decline over the past month, raising concerns about its immediate trajectory.

Analysts have identified critical resistance levels that could determine whether the cryptocurrency can reverse its current downtrend.

Crypto analyst Ali Martinez recently highlighted two pivotal price points for Ethereum.

A breach of $2,100 would signal the beginning of a potential upward trend, but $2,300 remains the most crucial level for confirming a bullish reversal.

“Failing to reclaim these levels could lead Ethereum to deeper losses,” noted Martinez on X (formerly Twitter).

If Ethereum fails to surpass these resistance levels, analysts predict further declines toward $1,600 and $1,155.

Such a drop would represent additional losses of 12% and 37%, respectively, exacerbating what has already been a challenging first quarter for Ethereum.

On-chain data from IntoTheBlock reveals significant investor activity between $2,200 and $2,580, where approximately 66.18 million ETH was acquired by 12.43 million addresses.

This range now serves as a substantial resistance wall.

A breakout above these levels could generate bullish momentum, but experts remain cautious due to a lack of clear catalysts.

Market intelligence firm Glassnode has also raised concerns about Ethereum’s current support levels.

Its Cost Basis Distribution data indicates limited investor engagement near current prices around $1,800.

Many investors are reportedly selling at a loss, further contributing to price instability.

Clusters of ETH with cost bases between $2,000 and $2,050 have recently disappeared as higher-cost holders attempt to average down their positions.

The largest accumulation zone now lies at $1,537, where nearly 994,000 ETH was acquired.

If the downtrend persists, this level could act as structural support in the near term.

While Ethereum’s long-term prospects remain tied to broader market sentiment and technological advancements like scalability upgrades, its immediate future hinges on reclaiming key resistance levels.

“The next few weeks will be critical for Ethereum’s price trajectory,” emphasised Martinez in his analysis.

Investors are closely watching whether ETH can break past $2,300 or face deeper corrections.

At the time of reporting, the Ethereum (ETH) price was $1,854.95.