Despite facing intense selling pressure and struggling to regain the $2,800 mark, Ethereum must hold the $2,600 level to sustain its momentum and prevent a broader market sell-off.
Analysts believe that Ethereum's inability to break through key resistance levels and its relative weakness compared to Bitcoin suggest the possibility of further downside risks for altcoins.
Top crypto analyst Ali Martinez warns that altseason could be canceled if Ethereum fails to hold the crucial support level of $2,600, triggering a broader sell-off in altcoins.
In the short-term, bulls need to defend the $2,600 level to confirm a sustainable rally, while bears remain in control as long as Ethereum stays below $2,800.