Ethereum reaches key support, is the bear market starting or is it a bull market pullback?

The price of Ethereum (ETH) has recently been under pressure, currently approaching the core support range of $2,500 to $2,700 that has attracted significant market attention. From a technical analysis perspective, this area has historically played multiple roles: it is both a dense trading zone before the bull market starts from the end of 2023 to the beginning of 2024, and a convergence point for multiple long-term weekly moving averages (such as the 50-week and 100-week moving averages), forming a strong technical support confluence.

If the price can successfully stop falling in this area, accompanied by a significant increase in trading volume, it is expected to establish a solid 'double bottom' or 'head and shoulders bottom' pattern, laying the foundation for subsequent rebound trends. However, market sentiment remains fragile, and any negative news could trigger further sell-offs. The key risk point is that if this support zone is effectively broken (for example, if the daily closing price remains below $2,500), it could open up downward space to $2,200 or even $2,000. Therefore, the current price level is a battleground for both bulls and bears, and the outcome of this struggle will determine the market direction in the coming months.