Ethereum faces a critical technical test as its price approaches the significant $2,400 support level, following a substantial 15% market correction.
The significant drop was triggered by a combination of a bull trap preceding the decline and the subsequent unwinding of leveraged positions built during the recent downturn. Open Interest (OI) reached a substantial $41.45 billion before contracting by 14%, reflecting this widespread deleveraging.
Market analysts emphasize the pivotal nature of the $2,400 support zone. Technical indicators suggest that a decisive breach below this level could trigger accelerated liquidations and potentially deepen the ongoing corrective phase.
In a contrasting signal of medium-term confidence, a large market participant (whale) accumulated a significant 48,825 ETH, worth approximately $127 million, at an average price of $2,605. This substantial purchase highlights a belief in Ethereum’s underlying value despite the current weakness.
The current correction has proven sharper for Ethereum compared to Bitcoin, primarily attributed to Ethereum’s heightened sensitivity to leveraged speculation and resulting market volatility.
The next 48 hours are widely viewed as critical for Ethereum’s near-term price trajectory. Market direction will likely be shaped by further developments in smart money positioning and shifts in overall retail market sentiment surrounding the asset.