Ethereum is trading at a critical demand level after an 11% decline from recent local highs. This decline worries analysts and investors as a loss of this level could trigger a wave of aggressive sell-offs, potentially causing ETH prices to decline.

However, amidst these concerns, prominent analyst Ali Martinez shared an sanguine technical analysis, highlighting the powerful risk-reward setup on the Ethereum chart. According to Martinez, the current level represents an attractive entry point, suggesting Ethereum could see significant upside if it maintains support.

The timing of the potential rebound is particularly noteworthy in the context of tomorrow’s US elections, which may significantly impact broader market sentiment. Many in the crypto community are predicting that the election results will set the stage for a modern rally, and Ethereum will be in a position to capitalize if bullish momentum returns.

In the coming days, all eyes will be on whether ETH will be able to defend this demand zone, as its performance could either confirm or challenge the prevailing bullish expectations in the market. For now, Ethereum’s price level remains key, with the market closely watching for signs of direction amid the election and broader economic uncertainty.

Can Ethereum Stay Above Key Demand?

Ethereum is trading at a key support level around $2,450, which many analysts consider a critical “last line of defense” for bulls. Ethereum could experience a deeper decline if it doesn’t reach this level, potentially putting it at risk of underperforming against competitors like Solana and Bitcoin that have shown greater relative strength recently.

Investors share this concern and are closely watching ETH’s movement as it teeters on the brink of this key support.

But top cryptocurrency analyst Ali Martinez does presented a more sanguine perspective on Xsuggesting that Ethereum may be poised for a significant recovery. In his latest technical analysis, Martinez highlighted that the current risk-reward ratio for ETH is very attractive for a long position, especially for those with a long-term perspective.

He revealed that he had set a stop-loss below $1,880 – a level that limits the risk of loss – while aiming for an ambitious price of $6,000. This target represents a potential upside of 145% from current prices, underscoring Martinez’s confidence in Ethereum’s potential upside if he can hold on to this key zone.

The next few days, or even hours, may prove decisive for Ethereum, which consolidates at $2,450. To get closer to Martinez’s target, ETH needs to build strength and start challenging local highs, signaling buyers are moving in.

The upcoming price action will show whether Ethereum can revive its bullish momentum or succumb to further downward pressure. For now, $2,450 support represents a critical threshold for ETH’s near-term trajectory.

ETH technical analysis

Ethereum (ETH) is trading at $2,450 after rebounding strongly after failing to break below the $2,400 level. This resilience is encouraging for bulls who believe ETH is poised for significant growth, especially if Bitcoin can surpass its all-time high.

However, this key level of support alone will not be enough to trigger a sustained uptrend. Bulls need to push price above the 200-day exponential moving average (EMA), currently at $2,762, to confirm momentum and establish a stronger bullish outlook.

Since the beginning of August, the 200-day EMA has been a formidable resistance, repeatedly pushing down the ETH price. A break above this moving average would indicate a critical change, potentially turning it into a modern support level. The move would set the stage for ETH’s challenge to higher levels, fueled by renewed buyer confidence and broader market optimism.

Conversely, if bulls fail to regain this EMA, Ethereum could face continued downward pressure, leading to further tests of key support. For now, ETH support around $2,450 is keeping the hopes of breakout bulls alive, but reclaiming the 200-day EMA remains imperative to fuel the next leg of the bullish rally.

Featured image from Dall-E, chart from TradingView