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

▲ Ethereum (ETH)

Ethereum has failed to break through the $2,400 resistance level and entered a price correction phase, with intense market contention expected over the defense of key support levels.

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

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

Upward resistance is immediately formed in the $2,385 area, with $2,400 and $2,420 cited as major hurdles. Analyst Hov predicted that if Ethereum clearly breaks through the $2,420 resistance level, a full-fledged rally will resume. Successfully settling in that range would set the stage for exploring new highs, extending the gains beyond $2,440 to $2,500 and $2,550.

Indicators in 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 investor 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 is also positive, as it signals a shift in market sentiment towards a buying advantage.

Overall investor sentiment is improving due to the confluence 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 needed 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 continue to maintain a solid foundation.

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