The DeepSeek’s shockwaves had settled, but the selling pressure triggered by the tariff war continues to offer a strong upward pressure. After a brief recovery, the crypto markets have revived a notable pullback, which has squeezed some of the gains it incurred during the last trading day. The Ethereum price that received the highest buying volume since May 2021 after it marked the local bottom close to $2100 has again reached a pivotal range, which may further initiate a fresh pullback if not defended.
Ever since the BTC price rose above the consolidation back in November, the ETH price has failed to match the pace of the rally. As a result, the price continued to maintain an ascending consolidation, failing to sustain above $4000. While the memecoins and AI continued to thrive, the ETH price lagged heavily during the bull run.
Buy why? Why is the Ethereum price lagging so much during this bull run?
- The second-largest token faced huge competition from Solana and Solana-based memecoins, which attracted massive volume
- Although the spot ETH ETF has been attracting some investments, the first preference of institutions has always been Bitcoin
- Besides, the Greyscale Trust’s ETHE faced massive outflows while the fees continued to remain higher
- Regulatory uncertainty hovering over Ethereum
- Bitcoin’s range-bound movement has been heavily impacting ETH price and other altcoins
- Lack of significant upgrades or news
- Market sentiment and overhyping
Currently, the ETH price has plunged below $2800 from the interim highs close to $2900 and is approaching a crucial range of around $2700. Here is the range that needs to be held to prevent deeper correction.
Therefore, the ETH price is required to hold above $2700, as a drop below these levels may trigger over $1 billion in leveraged long liquidations, which appears to trigger a massive plunge. Regardless of the rising bearish pressure, the token remains in the bullish range. The price trades within an ascending triangle in the monthly chart, holding the 200-day MA as a support.
Unfortunately, the technicals have turned bearish as +Di & -Di are about to undergo a bearish crossover along with the MACD. Therefore, the next few days could be extremely crucial for the Ethereum (ETH) price rally, as a rise above $3000 could squash the bearish possibility; otherwise, a consolidation between $1900 and $2200 may prevail for long.
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