Since early October, when Ethereum’s price began falling into bear territory, it has struggled to regain any significant price levels. The ether token failed to hold in many support zones throughout November as it fell.
While Ethereum appears to be gaining on bullish momentum, signaling an imminent price reversal, a continuation of the bear market seems a more likely scenario after the recent drop to $3,000. A popular analyst recently presented a forecast that paints a disturbing picture for the second largest cryptocurrency.
$2,400 could be the next price cushion for ETH
In a December 13 post on social media platform X, market analyst Ali Martinez highlighted that the Ethereum price is showing an intriguing sign of potentially continuing declines in the coming weeks. Martinez’s analysis was based on a bear flag pattern – a technical analysis pattern often used to confirm the continuation of a downtrend.
Typically, the pattern consists of two elements – a flag and a flagpole. The price initially shows a piercing downward move, forming a flagpole. This is usually followed by a low period in which the price shows upward movement or even sideways consolidation; this period of choppy price action is a “flag.”
The integrity of the flag comes from its upper and lower borders, which serve as zones of resistance and support. Since breakouts below support zones typically indicate that a bear market may be in play, the failure of the flag support would then be necessary confirmation of a previously observable sell signal.
In a scenario where this happens, the cryptocurrency expert indicated that a possible target for Ethereum could be the $2,400 price level. This is likely because all previous regions may have insufficient liquidity to sponsor any significant price reversal.
Ethereum Whales real price of $2,400 is observable – what to expect
Interestingly, online data lends credence to the reputation of $2,400 as an appropriate price level. In a Quicktake post on the CryptoQuant platform, a pseudonymous OnChain expert: revealed that Ethereum is currently trading very close to a significant price level.
According to the analyst, Ethereum whales – holding at least 100,000 ETH – mainly acquired coins worth close to $2,400. Interestingly, the Ether token rarely drops to price levels close to the price realized by this group of investors.
Over the past five years, there have only been four occasions when the price of ETH almost reached the purchase price of these whales before eventually making a significant rally. If this historical pattern holds true, the second-largest cryptocurrency could see the beginning of another bull run.
At the time of writing, Ethereum is trading at $3,086, reflecting a 4% price drop over the last day.
Featured image from iStock, chart from TradingView
