Ethereum may return to the track! Weekly close crucial! 
2025-02-07
Category: None

Ethereum is currently trading near the lower boundary of a falling wedge pattern, which typically signals a potential bullish reversal, though confirmation is still needed. If the price breaks downward, it may test the $2,400 support, while an upward breakout could push it towards $3,200. The price is hovering around the 200-day moving average (MA), a key support level, while the 50-day MA acts as resistance. Volume Profile (VPVR) indicates strong resistance around $3,200-$3,400, while the $2,400-$2,500 zone has lower liquidity, suggesting a risk of sharp declines if broken.

If Ethereum breaks above $2,900-$3,000, it could gain momentum towards $3,200-$3,400, confirming a bullish breakout from the wedge pattern. Conversely, if the $2,500 support fails, the price may drop towards $2,400 or even $2,000, with further downside risk if it stays below the 200-day MA.

In conclusion, $2,500 is a critical support level, and a breakdown could trigger stop-losses. A sustainable uptrend is unlikely unless Ethereum clears $3,200. High volatility is expected in the coming days, so traders should remain cautious and manage risk accordingly.