Following a small price decline on Friday, Ethereum (ETH) has shown a significant increase in strength by 2.84% in the last 24 hours. Commenting on the possible next movement of the altcoin, crypto analyst Ali Martinez has painted a possible path to a new rise up to $6,000.
Ethereum Is Now At Key Support – Here’s Why
In X posted on Saturday, Martinez shared that Ethereum is currently testing the main support level at $2,400. Notably, Ethereum dropped to around $2,410 on Friday and has since remained in this price zone following a recent rejection at $2,500. According to Ali Martinez, ETH must maintain support at $2,400 to avoid breaking the ascending channel dating back to July 2023.
#Ethereum it is testing the $2,400 support area. If this rate holds, we can see $ETH aiming for the upper limit of the channel near $6,000! pic.twitter.com/W8J8WVy5CL
– Ali (@ali_charts) October 26, 2024
Based on the analyst’s trading chart, a successful retest of the mentioned support area will allow ETH to rise above the $3,000 mark before finding consolidation between $3,350 – $3,750. After that, another price breach will occur that should push the price of Ethereum to the end of its ascending channel at around $6,000, which represents a gain of about 142% from the current market value of the asset.
However, If Ethereum bulls fail to hold support at $2,400, the altcoin could fall by 40% to find a new support level at $1,500. In order to avoid significant losses in this high “leak risk” scenario, Ali Martinez has advised traders to set a stop loss between $2,150 – $2,300.
Coinbase Premium Negative Index Signals Bearish Sentiment For ETH Market
In other news, CryptoQuant analyst Darkfost has noted that the Ethereum Coinbase Premium Index is currently -2 and very negative. According to Darkfost, this development shows that US institutional investors or market whales are currently withdrawing their ETH.
For short-term traders, this is a strong bearish signal as Ethereum may experience a downtrend in the coming days. However, Darkfost says long-term traders may want to use such a price drop as a good opportunity to accumulate.
At the time of writing, ETH is trading at $2,473 per unit. Although the altcoin may have recorded a small gain in the previous day, the decline of 6.47% and 6.27% in the last seven and thirty days, respectively, still leaves much to be desired by investors. In addition, the daily trading volume of Ethereum, with a value of 12.22 billion dollars, shows a decrease of 48.27% which shows the decrease in market capitalization and possible price volatility.
Featured image from Dribble, chart from Tradingview