After falling slightly in price on Friday, Ethereum (ETH) has shown great resilience with a 2.84% escalate over the last 24 hours. Commenting on the altcoin’s possible next moves, cryptocurrency analyst Ali Martinez outlined a potential trajectory towards a recent record high of $6,000.
Ethereum Now in a Critical Support Zone – Here’s Why
IN post X on Saturday, Martinez reported that Ethereum is currently testing the key support level at $2,400. It is worth noting that on Friday, Ethereum dropped to around $2,410 and has since remained in this price zone after a recent rejection at $2,500. According to Ali Martinez, ETH needs to maintain support at $2,400 to avoid breaking the ascending channel, which extends until July 2023.
#Ethereum testing the key support zone at $2,400. If this level continues, we may see $ETH We are heading to the upper border of the channel near $6,000! pic.twitter.com/W8J8WVy5CL
— Ali (@ali_charts) October 26, 2024
Based on the analyst’s chart, a successful retest within the specific support zone will allow ETH to rise above the $3,000 level before consolidating in the $3,350 – $3,750 range. This will be followed by another price break, which should push the Ethereum price to the upper boundary of the ascending channel around $6,000, indicating a potential upside of 142% over the asset’s current market price.
However, if Ethereum bulls fail to maintain support at $2,400, the altcoin could fall by 40%, finding a recent support level at $1,500. To avoid significant losses in this high risk situation, Ali Martinez he advised investors set their stop loss in the range of $2,150 to $2,300.
The negative Coinbase Premium Index signals bearish sentiment in the ETH market
In other news, CryptoQuant Darkfost analyst he noticed that the Ethereum Coinbase Premium Index is currently -2 and highly negative. According to Darkfost, this development indicates that US institutional investors or market whales are currently aggressively dumping their ETH holdings.
For short-term investors, this is a robust bearish signal as Ethereum is likely to see a downtrend in the coming days. However, Darkfost states that long-term investors may want to operate such a price drop as an excellent opportunity to accumulate.
At the time of writing, ETH is trading at $2,473 per unit. While the altcoin may have seen a slight gain over the past day, its decline of 6.47% and 6.27% over the past seven and thirty days, respectively, still leaves much to be desired for investors. Additionally, Ethereum’s daily trading volume, valued at $12.22 billion, reflects a decline of 48.27%, signifying reduced market liquidity and potential increased price volatility.
Featured image from Dribble, chart from Tradingview
