While the price of Ethereum (ETH) struggles to surpass the critical resistance level after its rapid rise, analysts are warning investors about a short-term correction.
In recent days, while the cryptocurrency markets have been experiencing volatile days, the leading cryptocurrencies Bitcoin (BTC) and Ethereum seem to be stuck at critical levels after strong rallies. According to FxPro analyst Alex Kuptsikevich, Bitcoin has been fluctuating around the $104,000 level for the last six days, and this situation is considered quite normal as it approaches the historical peaks seen in December and January.
On the Ethereum side, the picture looks a bit more cautious. Ethereum, which saw a rapid rise of about 55% in the last seven days, has failed to surpass the $2,700 level. Particularly, the fact that this level also corresponds to the 200-day moving average has created significant resistance in the ETH price. Kuptsikevich stated that the price could experience a correction from the current levels and might pull back to the $2,400 level.
This potential correction of Ethereum may also affect other altcoins that move together with Ethereum in the market. Analysts believe that such corrections following rapid rises are necessary for the market to continue rising in a healthy manner.
Investors should be cautious because these corrections can trigger panic selling and increase short-term volatility. Experts remind the importance of risk management during such times and emphasize that new investors entering the market should take cautious steps.