Price Analysis: Will Ethereum Hold at $2,515 Support Amid $2,650 Resistance?
Ethereum’s price is currently hovering above a critical support level, but mounting exchange deposits and resistance at $2,650 are raising concerns about the sustainability of the recent rally.
Key Highlights:
- Ethereum price is consolidating around $2,595 following multiple failed attempts to breach the $2,650-$2,700 resistance zone.
- On-chain metrics suggest strong staking growth and whale accumulation, yet daily active addresses linger between 300K-400K.
- A drop below $2,515 could signal a retreat to the $2,400-$2,450 range, while a breakout above $2,650 might pave the way for a push towards $2,800.
Price Movement and Key Levels
Ethereum has recorded a 6.5% gain over the past week, climbing from $2,415 to the current price of $2,628. Despite breaching the crucial $2,515 resistance, the asset now faces a barrier near $2,650, a level that has historically impeded further upward momentum.
While the market appears optimistic with over 36 million ETH staked, reflecting increased long-term confidence from major holders, rising exchange deposits and tepid retail involvement are adding a layer of uncertainty to the current scenario.
Exchange Metrics and Staking Trends
Recent on-chain data from CryptoQuant indicates a mixed picture. Despite significant ETH inflows between June 26 and June 28, driving the price from $2,430 to $2,515, subsequent outflows coincided with a minor price dip followed by a strong rally to $2,625 by July 3.
Notably, the surge in deposit transactions on exchanges, such as DeFi activities or staking initiatives, suggests that the liquidity entering platforms may not solely be for selling purposes, potentially buoying the price further.
Whale Activity and Price Analysis
With a consistent increase in staked ETH and substantial withdrawals from centralized exchanges, there is a clear trend towards long-term holding and reduced circulating supply. However, the stagnant daily active addresses pose a concern, indicating limited retail participation despite institutional and whale interest.
Technically, Ethereum remains bullish, reclaiming the 200-day SMA and forming higher highs. The current resistance at $2,650-$2,700 presents a critical juncture, with a breakout signaling targets at $2,800 and beyond, while a failure could lead to a pullback to $2,515 or even $2,450.
Short-Term Outlook and Conclusion
Although momentum indicators suggest a potential pause or retracement, the overall uptrend remains intact as long as Ethereum holds above key support levels. Traders should monitor the $2,650 zone closely for definitive price action, with a breakdown potentially signaling a shift in market sentiment.
Looking ahead, Ethereum’s ability to sustain above $2,650 amidst evolving deposit dynamics will be crucial in determining its next trajectory, with underlying fundamentals supporting a cautious yet optimistic outlook.
