Home Altcoins News Ethereum Faces Key Support – Price Reversal Possible

Ethereum Faces Key Support – Price Reversal Possible

Ethereum price

Ethereum (ETH) is currently navigating a pivotal point in its price trajectory, with several factors pointing to both short-term caution and long-term potential. Recently, ETH’s Market Value to Realized Value (MVRV) ratio dipped below its 160-day moving average, a trend that historically has preceded price corrections. A notable instance of this occurred in June 2024, where ETH saw a significant 40% decline from $3,500 to $2,100. This trend could suggest a potential downturn for ETH in the short term, urging traders to stay alert for possible volatility.

Ethereum’s Key Support Zone: A Buffer for Price Action

Ethereum’s critical support range lies between $2,230 and $2,610, where roughly 11.99 million wallets hold 62.27 million ETH. This range is a major accumulation zone for the asset, which could act as a buffer, potentially offering ETH a price floor in the event of further sell-offs. Should ETH test this support level, the token could bounce back thanks to strong buying interest. However, if selling pressure increases, ETH could break through this level, potentially leading to a deeper decline.

Historically, ETH has shown resilience around such accumulation zones, which makes this range a crucial point for traders to monitor. If the price remains above this support zone, it could lay the groundwork for future bullish momentum.

Falling Wedge Patterns: A Bullish Indicator?

ETH has formed falling wedge patterns in past years (notably in 2021 and 2024), and now in 2025, another such pattern is emerging. Falling wedges are generally considered a bullish technical indicator, as they often precede significant price movements after consolidation ends. Despite the current short-term bearish pressure, the formation of this pattern suggests that a potential upside breakout could occur in the near future.

Given Ethereum’s history of bouncing back after consolidating within such wedge formations, this could be a promising signal for a rally. If the price breaks out of the current wedge pattern, ETH could see significant upward momentum, creating potential buying opportunities for traders. The consistency of this pattern in previous market cycles offers a reason for long-term optimism.

What Lies Ahead for Ethereum?

Ethereum is currently facing a mix of short-term bearish signals and long-term bullish potential. The MVRV ratio, which is often a leading indicator of price corrections, suggests there may be some downside risk. However, the strong support zone between $2,230 and $2,610 provides a buffer against further declines, while the falling wedge pattern hints at a possible bullish reversal once consolidation concludes.

Traders should watch how ETH interacts with its key support levels. A sustained hold above the $2,230–$2,610 range could signal strength and set the stage for a recovery, while a break below may open the door to further declines. Ultimately, Ethereum’s historical trends, combined with the technical setup of the falling wedge, suggest that the long-term outlook remains positive, with the potential for a breakout in the near future.

As of now, Ethereum’s price trajectory is balanced between short-term caution and long-term optimism. While short-term risks are present due to the MVRV ratio’s dip, the combination of strong support and bullish technical patterns offers hope for a potential recovery. Traders and investors alike will be keeping a close eye on Ethereum’s next moves in the coming weeks to assess whether the rally could begin once again.

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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