Despite Bitcoin’s recent stumble below $59,000, Ethereum is showing resilience with a modest rise of 0.66%, bringing its current price to $2,381, albeit with a slight intraday pullback of 0.14%. This development raises the question: will Ethereum’s potential for recovery hold strong as Vitalik Buterin and the Ethereum Foundation continue to offload their holdings? In this article, we will analyze Ethereum’s price action, support levels, and potential targets.
Ethereum Price Analysis
A closer look at the 4-hour chart reveals a descending triangle pattern forming in Ethereum’s price action. Currently, ETH is testing the crucial support trend line, hinting at a possible bullish reversal. Notably, a lower price rejection near the $2,300 support level and the local support trend line further bolster the optimism for a rebound. The 4-hour Relative Strength Index (RSI) also shows a bullish divergence between the last two dips around the $2,340 mark, indicating a potential double-bottom reversal.
Analyst Highlights Ethereum’s Point of No Return
Crypto analyst Martinez recently highlighted a critical support level for Ethereum, pegged at nearly $2,250. According to his analysis, based on the TD Sequential indicator, Ethereum typically enters a strong bull run whenever the price breaks above the TD resistance trend line. Conversely, historical data suggests that a breakdown below the TD support trend line has often resulted in an average correction of around 53%. With the average TD support currently at $2,250, a significant drop below this level could trigger a substantial market correction.
Martinez’s repost of this analysis on X, along with the commentary, “Now it makes sense why Vitalik Buterin and the Ethereum Foundation have been selling,” suggests an increasing risk of Ethereum falling below the $2,250 threshold.
Ethereum Price Targets
Should a reversal rally occur, the near-term overhead resistance levels for ETH are positioned at $2,425 and the local resistance trend line. Based on Fibonacci retracement levels, a breakout could propel Ethereum towards the 50% level at $2,520 or even the 78.60% level at $2,624.
However, if a bearish breakdown occurs, Ethereum’s next support levels to watch will be at $2,300 and $2,200. The overall market sentiment and ongoing sell-offs by key figures like Buterin may weigh heavily on ETH’s price trajectory.
Also Read: Uniswap Launches Unichain – 250ms Block Times Aim To Revolutionize Ethereum Transactions
As Ethereum continues to navigate a precarious market landscape, investors should remain vigilant of key support levels and potential price targets. The interplay between bullish signals and sell-offs from influential figures adds a layer of complexity to Ethereum’s outlook. For ongoing updates and deeper insights into Ethereum’s future price movements, stay tuned to our ETH Price Prediction section, where we analyze the latest trends and market developments.
As we await further price action, the question remains: can Ethereum maintain its upward momentum, or will the looming sell-offs push it into deeper correction territory? Only time will tell.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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