Ethereum is currently testing a crucial support level near $2,600, as it struggles to maintain momentum below the $3,500 resistance. The cryptocurrency has formed a symmetrical triangle pattern, indicating a potential breakout or breakdown near the $3,000 zone. A failure to hold the $2,600 support could lead to further declines, while a successful breakout above $3,500 could pave the way for a rally towards $4,000.
Despite global market pressures, Ethereum has shown resilience, maintaining key levels and keeping traders on edge. The daily chart shows Ethereum recently breaking above a descending channel, but momentum has waned as it approaches the $3,500 resistance, which aligns with the 100-day and 200-day moving averages. A rejection at this level could trigger another test of the $2,600 support.
Market sentiment remains cautiously optimistic, with controlled leverage levels and open interest in Ethereum derivatives near $18 billion. However, Bitcoin's rising dominance and ETF narratives continue to draw attention away from altcoins. Ethereum needs strong volume and conviction to regain leadership and avoid deeper downside risks.
Ethereum Faces Critical Test as $2,600 Support Looms
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