Analysts Warn of Potential Ether Decline as Price Hits $2.4K Resistance Level

Analysts Warn of Potential Ether Decline as Price Hits $2.4K Resistance Level

Ether's price struggles as it faces a pivotal resistance at $2,400, with $2.5 billion in liquidation risk looming near $2,150. Will bears seize control?

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Ether (ETH) experienced a decline of 3.4% to $2,287 on Monday, following its fourth unsuccessful attempt to surpass the $2,400 mark in the last two weeks. This pattern has established a significant triple top formation, indicating persistent selling pressure at that resistance level.

The price remains below the 100-day exponential moving average, which is situated around $2,350, limiting any upward movements. The critical support level has shifted to $2,150, previously a resistance point, with over $2.5 billion in liquidation risk concentrated in this area. If ETH falls below this threshold, it may trigger further selling activity, pushing prices down to the $1,900 range.

Additionally, the ETH/BTC trading pair has shown signs of weakness, dropping below 0.032 BTC, which was a significant support level. This shift suggests a waning strength of Ether relative to Bitcoin, potentially affecting future price movements.

On Binance, the open interest for Ether has fallen to $2.58 billion, similar to levels observed earlier in the month when ETH was trading around $2,200. This decline in open interest indicates a reset in market leverage following recent trading activities.

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