Ethereum Price Analysis
On the 4-hour chart, the price action of ETH reveals a declining trend forming a triangle pattern. The altcoin is currently testing its support trend line, suggesting the possibility of a bullish comeback.
Key observations include:
- The lower price rejection near the $2,300 support level and the local support trend line.
- The 4-hour RSI indicates a bullish divergence between the past two dips near the $2,340 mark, signaling a potential double-bottom reversal.
Analyst Highlights Ethereum’s Point of No-Return
In a recent post on X, crypto analyst Martinez emphasized crucial support for ETH around $2,250. This support is vital based on the TD setup analysis:
- A strong bull run typically follows when Ethereum breaks above the TD resistance trendline.
- A breakdown below the TD support trend line has historically resulted in an average correction of 53%.
The current average TD support trendline sits at $2,250. A breach below this level could trigger a significant price drop. Martinez’s post included the caption, “Now it makes sense why Vitalik Buterin and Ethereum Foundation have been selling,” indicating a heightened risk of a drop below $2,250.
Ethereum Price Targets
In the event of a reversal rally, the overhead resistances for ETH in the near term are identified at:
- $2,425 (local resistance trendline)
- Potential Fibonacci levels at $2,520 (50% level) and $2,624 (78.60% level).
Traders and investors should keep an eye on these levels as they could dictate Ethereum’s next moves in the market.
Conclusion
Ethereum is navigating a critical phase as it tests support levels and aims for recovery. With insights from analysts and the ongoing sales from key figures in the Ethereum community, understanding these price dynamics is essential for anyone looking to invest or trade ETH in the current market.
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