ETH may continue to underperform if it stays below $2,400, one popular analyst claimed.
The second-largest cryptocurrency, which experienced a significant revival in mid-April and at the start of May, has been on a decline over the past week, and some analysts now believe it may plunge further in the near future.
Others remain cautious, arguing that traders should avoid jumping into ETH until it breaks convincingly out of its recent range.
Tread Carefully
As of press time, the asset is trading at around $2,280 (according to CoinGecko), representing a 4% decrease over the past 7 days. The renowned analyst Ali Martinez believes anything between $2,200 and $2,400 falls within a “no-trade zone,” arguing that only a sustained close outside this area will define “the next major move.”
X users Ted and CRYPTOWZARD also issued warning predictions. The former claimed that spot demand is weak and expects ETH to continue to underperform if it stays below $2,400.
CRYPTOWZRD forecasted that moving above the $2.4K resistance might trigger the next upside move, while trading below could lead to more “random movement.”
Certain factors reinforce the bearish scenario. The amount of ETH stored on centralized exchanges has been rising since May 5, recently surging to nearly 15 million coins. This displays that some investors have abandoned self-custody methods and flocked towards centralized platforms, which in turn increases immediate selling pressure.
Moreover, big investors have been reducing their exposure to the asset lately. Last week, Martinez revealed that whales (who owned almost 16 million ETH by October 2026) now hold less than 13 million units. Such a sell-off shows reduced confidence from these market participants, and their actions could trigger panic across the community, potentially prompting smaller players to cash out as well.
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The Bullish Signs
Contrary to the pessimistic predictions and elements mentioned above, there are some developments suggesting a notable price resurgence could be on the way.
Earlier this month, Ali Martinez spotted a so-called golden cross on the asset’s chart, a pattern that appeared in the final days of April. The setup is widely viewed as bullish, occurring when the 50-day moving average crosses above the 200-day moving average. Back then, the analyst thought this could pave the way for a rally toward $2,680.
Meanwhile, Tom Lee’s Bitmine Immersion Technologies continues to increase its exposure to the cryptocurrency and now holds 5.21 million ETH. The stash represents roughly 4.3% of the asset’s circulating supply, while its USD equivalent is almost $12 billion.
