Ethereum (ETH) faced a turbulent start to the week, witnessing a further 3% decline in its value by Monday noon.

Notably, the second-largest cryptocurrency has been on a downward spiral since mid-January, closely tied to the lacklustre response to the recent approval of spot Bitcoin ETF applications, which has also caused a significant dip in Bitcoin’s value by over 10%. Even the optimism surrounding a potential spot Ethereum ETF approval has failed to reverse the trend, particularly in light of the US SEC’s recent decision to delay its verdict on the Fidelity Spot Ethereum ETF application.

As the crypto market experiences these fluctuations, analysts are closely examining Ethereum’s potential moves, with the current price hovering around crucial make-or-break levels.

In a Monday Tweet, renowned crypto analyst Ali Martinez noted that Ethereum is currently situated in a key demand zone, spanning from $2,388 to $2,460, where approximately 1.02 million addresses previously purchased $4.82 million ETH ($11.6 Billion).

He further noted that the strength of this support zone could pave the way for minimal resistance, presenting a potential pathway for upward movement. However, the pundit warned of a potential pullback if Ethereum fails to sustain this level, suggesting the next significant support area lies around $2,000.

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Elsewhere, popular crypto analyst and YouTuber “Alan” also shared insights with his 54,000 followers on Ethereum’s current state, pointing out that Ethereum has touched its old resistance, which could turn into support if the price holds. Richard outlined two scenarios: a bullish pullback towards $3,000 or a potential re-entry into a range with a downward trend, similar to Bitcoin. 

However, not all analysts share the same optimism. “Crypto H” expressed a more bearish outlook, indicating that Ether’s fair value gap has been filled, and there is no compelling reason for the price to move higher. According to him, Ether’s chart suggests a potential downside with targets below the $2,400 support level.

“I am way more confident with taking short positions on ETH as there is little to no barrier for price to move lower and eventually make new lows $1500 and $1000 are the next targets I will be looking for.” Wrote the pundit.

That said, despite Ether’s price woes, the imminent deadline for the Spot Ethereum ETF, just four months away, is seen by some as a potential game-changer for mainstream adoption and institutional investment in ETH. Expectations for a bullish trend in 2024 are high, especially after Ethereum’s recent outperformance compared to Bitcoin. Notably, despite a 15% drop in Bitcoin following its spot ETF approval, the ETH/BTC pair surged by 26% and has been holding firm.

ETH was trading at $2,221 at press time after a 2.98% drop over the past 24 hours.