ETH may continue to underperform if it remains below $2,400, a popular analyst has claimed.
The second-largest cryptocurrency, which saw a major rebound in mid-April and early May, has seen a decline over the past week, and some analysts now believe it could fall further in the near future.
Others remain cautious, arguing that traders should avoid jumping into ETH until it convincingly breaks out of its recent range.
Tread carefully
As of press time, the asset is trading at around $2,280 (according to CoinGecko), which represents a 4% decline over the past seven days. Famous analyst Ali Martinez He believes Anything between $2,200 and $2,400 falls within the “no trade zone,” arguing that only a sustained close outside this zone will determine the “next major move.”
X Ted and CRYPTOWZARD users also made cautionary predictions. the previous He claimed Spot demand is weak and ETH is expected to continue to underperform if it remains below $2,400.
Cryptozrd expected A move above the $2.4K resistance could lead to the next upward move, while trading below could lead to a more “random move.”
Certain factors reinforce the bearish scenario. The amount of Ethereum stored on centralized exchanges has been rising since May 5, recently rising to nearly 15 million coins. This indicates that some investors have abandoned self-custodial tactics and turned to centralized platforms, which in turn increases spot selling pressure.
Moreover, large investors have reduced their exposure to the asset recently. Last week, Martinez open Whales (who had approximately 16 million ETH by October 2026) now own less than 13 million units. These sell-offs show a decline in confidence in these market participants, and their actions may spark panic throughout society, which could prompt smaller players to make money as well.
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Rising signs
Contrary to the pessimistic expectations and elements mentioned above, there are some developments that indicate the possibility of a significant return to rising prices is on the way.
Earlier this month, Ali Martinez spotted The so-called golden cross on the asset’s chart, a pattern that appeared in the last days of April. This setup is widely viewed as bullish, and occurs when the 50-day moving average crosses above the 200-day moving average. At the time, the analyst thought this could pave the way for a rally towards the $2,680 level.
Meanwhile, Tom Lee immersion techniques Bitmine It continues To increase its exposure to the cryptocurrency and now owns 5.21 million ETH. The stash represents approximately 4.3% of the circulating supply of the asset, while its US dollar equivalent is approximately $12 billion.
