\n\t\t\t\t\t\t\t\t\t\u2018Expect a cascading liquidation\u2019 if ETH fails to hold the crucial $2K threshold, one analyst warned.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
While the second-largest cryptocurrency has registered a significant rebound over the past month, it remains at risk of plummeting to drastically low levels during this cycle.<\/p>\n
On the other hand, some important indicators suggest that the worst might be over and the price could be gearing up for a major rally.<\/p>\n
The Critical Point<\/h2>\n
Ethereum, just like many other leading digital assets, has been on a roller coaster lately. Its price hovered between $2,000 and $2,400 during the past week and is currently at nearly $2,200 (per CoinGecko\u2019s data).<\/p>\n
The lower level was reached over the weekend when POTUS threatened<\/a> to destroy the Iranian power plants if the country refused to open the key oil corridor, the Strait of Hormuz. Back then, X user Ted noted<\/a> that ETH temporarily lost its $2,100 support zone, arguing that the next key level is $2,000. The analyst predicted that breaking below that mark could lead to a \u201ccascading liquidation.\u201d<\/p>\n ETH managed to hold its ground and headed north today following Donald Trump\u2019s recent de-escalation remarks<\/a> (despite being refuted by Iran).<\/p>\n Another analyst who stressed the importance of the $2K psychological level is Merlijn The Trader. He believes <\/a>that holding above that zone could open the door to a major bull run to a new all-time high of $12,000, whereas losing it would break nine years of support.<\/p>\n Just a few days ago, Ali Martinez assumed<\/a> that Ethereum had entered a \u201cgenerational buy zone\u201d because the asset\u2019s Market Value to Realized Value (MVRV) had dropped below 1. He reminded that in the past, such a development was followed by triple and even quadruple price explosions.<\/p>\n Most recently, he outlined<\/a> several MVRV pricing bands designed to serve as a roadmap. $1,655 was depicted as the most important support level, $2,356 as the first major resistance to reclaim, $2,647\/$3,639 as mid-term breakout targets, and $4,632\/$5,624 as long-term \u201cexpansion\u201d zones.<\/p>\n Over the weekend, the number of ETH coins stored on crypto exchanges registered another sharp drop, falling to a nearly 10-year low of roughly 15 million units. This trend suggests that investors continue to move their holdings from centralized platforms to self-custody, showing that they are not preparing for any mass sell-offs.<\/p>\n Conversely, the asset\u2019s Relative Strength Index (RSI) hints that another move south might be on the horizon. The indicator\u2019s ratio has surged past 70, suggesting that ETH has entered overbought territory and could be on the verge of a correction. Meanwhile, any readings beneath 30 signal that the valuation has fallen too much in a short period of time, meaning it might be time for a rebound.<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\nYou may also like:<\/h3>\n
Mixed Signals From These Indicators<\/h2>\n
<\/a>
\nBinance Free $600 (CryptoPotato Exclusive): Use this link<\/a> to register a new account and receive $600 exclusive welcome offer on Binance<\/b> (full details<\/a>).<\/p>\n