In the midst of the current crypto rally, Ethereum (ETH) finds itself on the verge of a make-or-break moment. Ethereum’s teetering on crucial support levels may result in a significant price correction if the critical $2,250 level fails.
Cryptocurrency enthusiasts are keeping a keen eye on Ethereum, as on-chain metrics indicate a major price shift could be underway. Esteemed analyst Ali Martinez recently
brought attention to essential Ethereum price patterns, utilizing the TD Sequential method to predict possible trends for this prominent digital currency.
As highlighted by Martinez, Ethereum has historically displayed a noticeable pattern through recent market cycles. Each time Etherum’s price surpasses the resistance marked by the TD setup, displayed in red, it triggers a bullish rally. Indeed, during past increases, Ethereum saw an 8,885% surge in the 2017/2018 market and a 1,462% rise in the 2020/2021 cycle, both reaching unprecedented heights. Similarly, Ethereum launched a bullish phase in early 2024, ascending from $1,400 to beyond $4,000, although it did not attain a new peak at that time.
Historical Corrections: Ethereum’s 53% Decline Patterns
On the contrary, analyzing the other side reveals equally significant insights. Whenever ETH crosses below the TD setup’s support line (shown in green), a pronounced correction often ensues, averaging a decline of 53%. Reviewing historical data, Ethereum has endured dramatic declines of 56.67%, 54.43%, and 51.41% following breaches of these supports.
Ethereum at a Pivotal Crossroads Within Crucial Support Levels
Right now, Ethereum’s situation is delicately poised, hovering near the critical $2,250 support threshold. Analyst Martinez cautions that if Ethereum cannot maintain this level, a steep decline could unfold, potentially echoing prior downturns.
This support level’s significance stems from the substantial entry of investors around this price point. For instance, insights from IntoTheBlock indicate that 2.4 million addresses bought Ethereum between $2,268 and $2,340, collectively holding 52.59 million ETH.
Martinez
emphasizes the potential consequences if this support zone collapses. Investors might rush to mitigate losses, potentially driving the price downward as limited buying at alternative levels weakens the defense against intense selling.
At the time of writing, Ethereum’s market position shows improvement, trading at $2,425, up by 1.655% over the previous day.
Disclaimer: This article serves informative purposes and doesn’t constitute financial advice. The perspectives in this content represent the author’s views and may not align with The Crypto Basic’s opinions. Readers are advised to do comprehensive research before making investment choices. The Crypto Basic is not liable for financial losses.
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