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Ethereum (ETH) has seen significant volatility in recent weeks, falling from a one-month high of around $2,730 at the end of September to around $2,400, raising concerns about the medium-term price stability of the second-largest cryptocurrency by market capitalization.
Ethereum Rally To $6,000 If Support Holds $2,300
Ethereum has fallen 7% in the past two weeks, with a key support level now at $2,300. This support is important for bullish investors hoping that it will once again push ETH to new all-time highs.
According to technical analyst, Ali Martinez, this period is important for Ethereum’s future price. Martinez suggests that if ETH can maintain its support above $2,300, a rally towards $6,000 may be on the horizon.
Such an increase would be much higher, surpassing Ethereum’s previous peak of $4,878 in November 2021. If this bullish scenario Played, it can translate to a whopping 150% increase from current trading levels.
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On the other hand, if Ethereum fails to hold above the support level of $2,300 in the short term, Martinez warns that the price of ETH may drop to around $1,600.
This would mean a drop of around 34% from current levels, exacerbating the decline loss of experience during previous market corrections on August 5 and September 6, when ETH fell by more than 20% each time.
A potential loss of the $2,000 mark would also be significant, marking a psychological barrier that has not been breached since November 2023.
This period coincides with the broad rise of the market that continued until the end of the first quarter of 2024, underlining the importance of the support level of $ 2,300 for Ethereum’s bullish outlook.
ETH Underperforms the Broader Crypto Market
In addition to the absence of bullist catalysts for the second largest cryptocurrency in the market, CoinGecko. data shows a significant lack of investor engagement. In the last 24 hours, Ethereum (ETH) recorded a trading volume of only 5%, reaching $14 billion.
Furthermore, Ethereum is currently underperforming compared to the broader cryptocurrency marketwhich has increased by about 3%. In contrast, the price of ETH has fallen by almost 6% in the past week, with a loss of more than 2% in the last 24 hours.
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This price stabilization can be linked to significant moving average losses (MAs) in the past two weeks. The 50-day MA is currently set just above Trading currency of ETH at $2,459, as shown by the blue line on the ETH/USDT daily chart below, which currently serves as resistance for the token.
Overall, ETH should maintain support above the $2,300 level. In addition, the token needs to identify a bullist catalyst that can restore its price above the previously lost levels and direct the next milestone to $ 3,000, a threshold that has not been reached since the beginning of August.
Featured image from DALL-E, chart from TradingView.com