While the cryptocurrency sector is starting to show signs of recovery, Ethereum (ETH) is no exception, but caution is still warranted.
While the cryptocurrency sector is starting to show signs of recovery after the recent Consumer Price Index (CPI) data showed that the inflation in the United States had risen less than expected in April, Ethereum (ETH) is no exception, but the danger of correction still exists.
As it happens, Ethereum has reached an important demand wall at $1,850 – $1,905, which represents a critical support zone that the cryptocurrency needs to retain in order to avoid declining further, crypto market analyst Ali Martinez observed in a tweet shared on May 9.
According to the expert:
“Ethereum breached a key demand wall at $1,850-$1,905. Failure to regain this critical support zone may trigger a correction, potentially leading ETH to the next significant demand area at $1,570-$1,630.”
As demonstrated on the IntoTheBlock graphic shared by Martinez, 2.36 million addresses have bought 8.37 million ETH at the above price range between $1,853.19 and $1,905.72. At the same time, 2.85 million addresses have bought 3.12 million ETH, paying between $1,571.46 and $1,628.76 apiece.
Addresses that bought Ethereum between $1,572 and $2,130. Source: Ali Martinez
Ethereum price analysis
In the meantime, the second largest digital asset by market capitalization is changing hands at the price of $1,878.27, recording an increase of 1.97% in the last 24 hours, as well as 0.40% across the previous seven days, and 0.99% on its monthly chart, as per data from May 10.
Ethereum 7-day price chart. Source: Finbold
It is also worth mentioning that Ethereum is one of the three altcoins that crypto trading expert Michaël van de Poppe recommended to keep an eye out for these days, as he suggested that ETH would remain stable if Bitcoin (BTC) crashed but decline against BTC in case of the flagship crypto’s volatile move to the upside.
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