Ethereum tests crucial support at $2.400

Ethereum is at a critical point. The price is falling back toward the support level around $2.400, a zone that has served as an important reference point several times over the past months. At the time of writing, Ethereum is trading at $2.375, down 2.4% in the last 24 hours. How the daily and weekly candles close will largely determine what can happen next from a technical perspective.

In brief:

• Ethereum is testing the support level around $2.400 again after an earlier break above it
• A price close below this level would signal a failed breakout, which is technically negative
• The daily 200EMA is at $2.167 and the daily 200MA at $2.030

Failed breakout would be a negative signal

Analyst DaanCrypto points to the importance of this level. Ethereum previously broke above $2.400, but is now falling back to that same zone. This pattern is called a retest in technical analysis.

As long as the price remains above this level, there is no reason for concern, according to the analyst. But if Ethereum fails to hold $2.400, this signals a failed breakout and the price returns to the previous trading range. That is usually not a good sign for those who are bullish.

Key technical levels in focus

From the chart DaanCrypto shares, it can be seen that the daily 200EMA is currently at $2.167 and the daily 200MA at $2.030. Both moving averages are well below the current price and form potential support zones if the support level around $2.400 does not hold.

The close of the daily and weekly candles is therefore the decisive factor. It indicates whether the retest is successful and the breakout still holds, or whether the market falls back into the earlier trading range between roughly $1.800 and $2.400.