- Ethereum is struggling to break above $2,700 due to a massive $4.4 billion supply zone creating strong selling pressure.
- Holding support at $2,496 is crucial, as breaking $2,663 resistance could spark a new rally toward $2,814.
Ethereum’s price action has been hitting a frustrating ceiling just below $2,700, as a massive supply zone valued at $4.4 billion looms large, stalling the altcoin’s momentum. This critical resistance, composed of 1.67 million ETH acquired between $2,635 and $2,712, is creating significant selling pressure that investors are struggling to overcome.
Over the past week, Ethereum has shown signs of weakening despite Bitcoin hitting new all-time highs. A key signal of this caution is the spike in ETH transfers to exchanges—a common precursor to sell-offs. As holders move their coins onto trading platforms, it indicates growing impatience and a shift toward profit-taking, which is limiting Ethereum’s upside potential.
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This large supply wall is a psychological and technical barrier. Investors who bought ETH within this range are likely looking to exit positions and secure gains, resulting in increased sell orders. This discourages fresh buying interest and puts a cap on price appreciation.
Currently, Ethereum is struggling to break through the $2,663 resistance level, having failed three times this month. On the flip side, it is holding steady above a support zone at $2,496. This support level is crucial; if Ethereum can maintain this base, it may consolidate and build the strength needed for another attempt at the resistance barrier.
Should market sentiment improve and selling pressure ease, a successful break above $2,663 could trigger a rally toward $2,814. Such a move would invalidate the current bearish outlook and renew optimism among traders, potentially sparking a fresh uptrend.
In summary, Ethereum’s short-term fate hangs in the balance between a formidable $4.4 billion supply wall and a key support level near $2,496. Investors will be watching closely to see if ETH can shake off selling pressure and follow Bitcoin’s bullish lead—or if the supply zone will continue to hold the altcoin back.
