Ethereum Holds $2,150 as On-Chain Activity Shifts While Market Sentiment Splits

Ethereum was seen trading near the $2,150 mark after regaining a key support level. This comes after a series of market reactions due to discussions on a potential ceasefire between the US and Iran.

However, despite price action suggesting short-term stability for Ethereum, on-chain metrics suggest a mix of activity. This has led to a focus on Ethereum’s next move without a clear trend.

Ethereum Price Holds Key Support After Decline

As can be seen from the Ethereum daily price chart, the asset is consolidating above the $2,100-$2,150 support zone. The coin declined significantly from the $2,600 mark before establishing a consolidation range.

ETH is currently seen trading within a narrow consolidation range between the support and resistance zones, where the selling pressure is seen around the $2,300-$2,400 zone.

Source: TradingView

Technical indicators have shown a lack of momentum in price movement. The relative strength index is still hovering around a neutral position, while the short-term moving averages are still providing some degree of support to the stock price. Price is still moving below a descending trend line that has been formed after a series of high points in the stock’s price movement pattern.

Resistance level still holds at $2,600, and this is a breakdown point. The structure of the market is unchanged until this point is broken. The areas of support below the current price are the $1,750-$1,850 range and a lower area at $1,600.

On-Chain Metrics Show Mixed Network Activity

Data from Glassnode shows Ethereum’s market cap declining from around $300 billion to near $260 billion over the observed period. The data also shows a gradual stabilization in recent sessions, suggesting a pause in selling pressure.

Similar pattern is observed for network activity. Number of active addresses increased substantially before decreasing again. Then, a recovery was observed for the active addresses. Though the activity is still lower than before, this reflects a lower level of engagement.

The same pattern is observed for the transactions. Transactions were reduced during the price fall then, a recovery was observed for the transactions. Though the transactions have increased, they have not returned to their previous peaks.

Market Sentiment Reflects Contrarian Outlook

The post by Ted Pillows on X presents a contrarian view of the market sentiment. The analyst pointed out that Ethereum did not fall as the market was anticipating a fall during the geopolitical tensions. The same applies to the expectations of a rally due to developments related to the ceasefire.

According to the tweet, the price may move slightly higher before the confirmed news, and then may fall. This is consistent with the current technical picture, where resistance levels continue to hold the price from increasing further despite the recent advances.

Market participants are still watching both the geopolitical news and the price levels. Ethereum is still trading within a specific range without a confirmed breakout or breakdown.

What's Next?

Ethereum is holding abov

e a critical support zone, but it is also facing resistance above. The price is consolidating, and there is no clear trend change. The on-chain data is also showing a stable market cap, along with moderate network activity.

However, traders are also divided in their opinion based on the overall market situation and levels. The overall situation is favorable for a range-bound market, where support and resistance levels are dictating the price.

Disclaimer: This analysis is based on market trends and does not guarantee future results. It should not be treated as financial advice. Cryptocurrency investments involve risk, so always do your own research (DYOR) before investing.