Recently, the Ethereum market has experienced a significant correction, with prices dropping over 14% from Wednesday to now, causing concern among traders and long-term investors. Previously, the market was generally optimistic about ETH breaking the $3000 barrier and was expected to lead the entire encryption market to strengthen.

However, the turbulence in the international situation has become the main reason for the market cooling down. The military conflict between Israel and Iran impacted the global capital markets on Thursday, leading to increased volatility in cryptocurrency asset prices and a rise in investors' risk aversion.

Observing the price trends from August 2021 to early 2024, it can be found that whenever Ethereum touches the support level of 2500 USD, it often rebounds, previously reaching levels as high as 4000 USD. Market analysis indicates that Ethereum must hold this key area to avoid deeper pullbacks and maintain upward momentum.

It is worth noting that Ethereum has successfully held above the $2500 mark in the past five weeks. Although this support level has been tested multiple times, its resilience has been verified. In the coming weeks, the performance of altcoins and the overall crypto market will largely depend on whether Ethereum can solidify this important foothold again.

This week in trading, Ethereum quickly fell from $2830 to $2556. The daily chart shows that ETH has been consolidating in the range of $2500 to $2830 for several weeks. Even in the face of international threats, Ethereum has still maintained its position above the 50-day and 100-day moving averages, which are currently trending upward.

The 200-day moving average located at $2642 has formed a resistance level. Ethereum briefly broke above this level but failed to hold, subsequently experiencing a pullback. Recent trading volume has increased due to heightened market attention and emotional fluctuations caused by the Israel-Iran conflict.

The support in the range of 2500-2520 USD is crucial. This area has historically been an important bottom, and if the bullish momentum regains dominance, the price could quickly rebound from here. However, if it clearly breaks below the 2500 USD mark, market sentiment may turn negative, potentially leading to further price declines to the 2300 USD level.