Cryptocurrency analyst Poseidon (@CryptoPoseidonn) has published a detailed price forecast for Ethereum (ETH). His analysisshared with his 123,000 followers on social media platform X, is centered around the key $2,160-$1,900 price range, which has historically provided significant high-time-frame (HTF) support since the summer of 2021.

ETH Price Analysis: $8000 Is Possible If…

According to Poseidon, Ethereum recently retested what he describes as “the most important support level on the chart” after a significant breakout earlier in the year. This price zone has consistently acted as a key battleground for bulls and bears, making it a focal point of technical analysis. “We broke out of this level at the beginning of 2024, which led to a significant price rally as it was the only resistance holding us back. Now, after 200 days, we are back at that level, and for me, buying ETH here is an opportunity,” Poseidon detailed in his analysis.

The resistance of the $1,900 support level is crucial for Ethereum’s bullish outlook. A break of this level without a quick recovery would likely indicate a cycle top and could trigger a drop to the $1,000 level, which would mean a significant reversal of the prevailing market trend. However, Poseidon rates this risk as low, expressing confidence in the reliability of the support: “I consider this scenario highly unlikely. I believe the price will bottom out in this range, which would indicate significant HTF lows.”

Looking ahead, Poseidon is setting conditional goals of Ethereum recovering and stabilizing above certain price thresholds. Initially, ETH needs to break above $3,000 and then $3,500 to set the stage for a potential rally to fresh highs. “If we can break above $5,000, I think $7,000-$8,000 is realistic. While I think we could go much higher, anything above $8,000 would be risky for me to stay long. I would be extremely cautious and sell quickly if the daily trend breaks down,” he said.

To justify these goals, Poseidon uses Fibonacci retracement levels, a common tool among traders to predict potential reversals, support and resistance levels based on past market movements. However, these projections are contingent on the market structure remaining intact without significant trend breaks.

The transition to the upside phase of the Ethereum market is dependent on several key technical indicators. First, Ethereum needs to reclaim and hold the 200-day EMA to signal strengthening momentum. Second, the crypto asset needs to hold support above the lower range, which is crucial to maintain bullish sentiment. Third, a breakout of the daily supply zone from $3,100 to $3,200 will likely test Ethereum’s resilience, which if successful could solidify the asset’s upward trajectory.

Poseidon discusses the challenges of this bullish turn, noting the current bearish sentiment and the difficulty of breaking above these resistance levels. “While we are at a strong weekly and monthly support level, we are still in a downtrend. To confirm this level as a bottom, we need to revert the daily trend to bullish.”

Adding to his technical analysis, Poseidon highlights the H8 time frame and its EMA200 as the “GOAT” (Greatest of All Time) for trend determination. “I have been studying the H8 EMA200 on ETH since 2018, compared it with other EMAs and time frames, and I can confidently say that the H8 EMA200 is the GOAT,” he claims. This particular time frame and moving average provide unique insight into short-term price movements and are crucial to Poseidon’s trading strategy.

At the time of going to press, the ETH price was $2,753.90.

Featured image created with DALL.E, chart from TradingView.com