![Ethereum Faces Downward Pressure As Analysts Eye Critical Support](https://coincult.com/wp-content/uploads/2024/05/images-2024-05-11T025632.841-1.jpg)
The Ethereum (ETH) price stands at a crucial point, experiencing substantial downward forces in the highly volatile cryptocurrency market. Renowned crypto analyst Ali Martinez has pointed out a vital support range between $2,000 and $2,430, a breach of which could trigger a steeper decline.
If the downturn persists, keep an eye on the critical support zone for #Ethereum between $2,000 and $2,430. In this range, around 9.37 million addresses hold nearly 53 million $ETH. pic.twitter.com/pJBygzggOv
— Ali (@ali_charts) April 16, 2024
A large number of investors have a substantial stake in this price range for two key reasons. As per Martinez, an astonishing 9.37 million addresses hold nearly 53 million ETH within this zone. This massive concentration of holdings signifies a deep-rooted interest from a vast multitude of investors.
If the price falls significantly below this crucial support level, it could initiate a surge of automated sell orders triggered by investors who bought at these levels, panicking and exiting the market. This rapid selling frenzy would intensify the downward pressure on ETH’s price.
Ethereum Support Zone Under Pressure
The identified support area holds value for a few key reasons. Many investors have purchased Ethereum at these prices, as shown by the large holdings across numerous addresses. If prices slip below this support, it may trigger automated sell orders from those investors, further increasing the downward pressure on Ethereum’s value.
![](https://www.tronweekly.com/wp-content/uploads/2024/04/ETHUSD_2024-04-17_01-54-07-1024x571.png)
According to TradingView, ETH is currently trading at the price of $3064 with a market capitalization of $367 billion. The ETH price is slightly 1.25% down in the last 24 hours and faced a sufficient decline of over 17% in just the last seven days. The 20-day Exponential Moving Average (EMA) is just crossing down the 50-day EMA, indicating further decline in the coming hours or days.
The overall crypto market has faced difficulties recently due to several reasons. Uncertain regulations and economic conditions have made the market unstable. Ethereum and other digital currencies have seen increased unpredictability and caution from investors as a result. This challenging situation has impacted the overall crypto sector.
The cryptocurrency industry, praised for its stability against conventional financial markets, encounters its own turmoil. Investors seeking refuge re-evaluate risk tolerance amidst prevailing conditions. This contradicts cryptocurrency’s purported hedging role as it grapples with distinct hurdles.