The price of Ethereum's ETH dropped significantly last week, pushing the price below a falling channel formation. With the price of Bitcoin dropping sharply, ETH dropped to $2,800. At that time, ETH found support near $2,815 and used this level to consolidate throughout the weekend. On Monday and Tuesday, ETH showed renewed strength by revisiting the 200-day simple moving average (SMA), which is currently acting as a resistance level.
A break above the 200-day SMA could boost market sentiment. However, Ethereum is facing the challenge of the 50-day SMA, which could force it into a consolidation zone between $3,371 and $2,811 and put it back into the falling channel. For a sustained uptrend, ETH bulls need to push the price out of this channel and the consolidation zone to the previous year's high of $3,967. Conversely, if the bears prevail, Ethereum's price could fall below the support level at $2,815 and potentially drop to $2,200. In this scenario, the temporary support level may be around $2,490.