Ethereum Just Hit a Key Support Level: Here's the Next Level to Watch

Ethereum Just Hit a Key Support Level: Here’s the Next Level to Watch

Nick Chong

Last Updated: June 11, 2024 11:05 am

3 mins read

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Ethereum has faced a strong correction after peaking near $1,350 last week. The cryptocurrency currently trades for $1,050, though fell as low as $950 on Monday due to an influx of selling pressure.

During the drop, the funding rates of the ETH futures markets were extremely overleveraged. In some cases, there were long positions holders paying in excess of 0.15% every eight hours to keep their positions open. This extremely high funding rate in the Ethereum futures market indicated that buyers were overleveraged.

The cryptocurrency has since bounced, returning to $1,050, though moved as high as $1,130 on Tuesday.

Here’s what analysts think comes next for Ethereum after this volatility.

Ethereum Must Hold $700

Crypto-asset analyst Michael Van De Poppe says that Ethereum has touched a level of key interest during the recent correction, holding $900. While the cryptocurrency remains above that support level, Van De Poppe says that all eyes should be on $700, which is where Ethereum could catch a bid next after the crushing correction:

“#Ethereum has hit the first level of interest here around $900. It’s looking for a new higher low after this higher high, which is natural. Also eyes on the $700 region. If that correction is over, $ETH is ready for $2,000+.”

If Ethereum manages to hold these key levels, he explained, the cryptocurrency is likely to rocket to new all-time highs past $2,000.

Ethereum’s previous all-time high is $1,450, set in early January 2018 after the Bitcoin correction seen into the end of 2017

Chart of ETH's price action over the past few years with an analysis by crypto trader Michael Van de Poppe (@CryptoMichNL on Twitter). Source: ETHUSD from TradingView.com

Macro Trend Still Bullish

Despite short-term trends, other analysts also remain bullish on Ethereum from a macro standpoint.

One trader noted that the cryptocurrency is reaching a key level of support from a medium to long-term perspective and thus will likely maintain its uptrend:

“Macro structure is looking good and nice recovery so far from this key support region. Now its time to see if this level of previously support will now be flipped into resistance. Pretty vital here that both pairings move higher on LTF.”

There are expectations that Ethereum catches a bid in the days ahead due to the vast amount of retail interest in the cryptocurrency.

Just yesterday, it was noted by analysts on Twitter that the search interest in the search term “Ethereum” has hit a new all-time high. Simultaneously, a PayPal-affiliated exchange has seen an influx in demand for the second-largest cryptocurrency.