Ethereum is currently testing key support levels after retracing over 10% from a local high of $2,730. This correction follows days of heavy buying pressure and expectations of an altseason. The pullback has divided analysts, with some anticipating another leg up and others preparing for a deeper correction.
Ethereum is holding above the $2,400 level, which now acts as crucial support. Bulls must defend this zone to maintain bullish momentum. The optimism hinges on Ethereum's performance relative to Bitcoin, with analysts believing that outperformance could trigger an altseason.
Analyst Daan noted that Ethereum faces resistance around 0.026 BTC. For bullish momentum to continue, ETH must hold above 0.0224 BTC; a break below could trigger a decline. A break above 0.026 BTC would open the door to a move toward 0.03 BTC and beyond, according to Daan.
Ethereum's short-term direction depends on holding $2,400 and maintaining strength against Bitcoin. If both conditions are met, the likelihood of a sustained altcoin rally increases significantly.
This article is based on our author's analysis of materials.