Ethereum has shown mostly sideways movement between $2,500 and $2,350 over the past seven days. This sideways movement has yet to reveal a clear path for how crypto is performing going forward, shutting down many bullish sentiments.
In an interesting analysis using TD Setup, crypto analyst Ali Martinez highlighted an important price point for investors to watch in the ETH price trajectory. The focus of this analysis is the $2,250 price point, a level that may be the line between a bullish acquisition and a steep correction.
ETH Price Must Hold $2,250
The TD setup is very popular among crypto analysts and investors. Historically, Ethereum has shown a clear reaction after breaking above or below the TD setup. Its reliability in revealing key reversal points has made it the go-to tool for analysts like Ali Martinez.
Using the ETH/US Dollar price chart shared on social media by X, Martinez noted that TD Sequential has made or broken the cryptocurrency’s price action in the past while also highlighting notable examples. Every time the price of ETH breaks above the TD setup resistance line, a strong bull run has followed. On the other hand, when ETH dipped below the support line of the setup, it corrected by an average of 53%.
The first significant breakout above the TD setup resistance resulted in an 8,885% surge, which saw the price of ETH reach a record high of $1,138 during that period. On the other hand, for the first time the price of ETH breaks below the TD setup, corrected by 56.67%. The most recent break above the TD setup occurred in March of this year, which saw the price of ETH rise by nearly 113% as it broke above $4,000 for the first time in two years.
Recent price dynamics put the TD setup at around $2,250. According to Ali Martinez, breaking this price point could cause a big drop in the price. If the 53% historical average repeats itself, Ethereum could correct as low as $1,100.
Current Market Summary
As of the time of writing, Ethereum is trading around $2,410, about 7% above the critical threshold of $2,250 identified by the TD setup. Although the price of ETH has managed to stay above this level for now, its proximity to this key price level makes it an important level to watch.
The TD sequence indicator identifies potential points of weakness in the asset’s trend, whether bullish or bearish. Therefore, a break below $2,250 would mean the final reversal from a bullish Ethereum to a bearish mindset.
Market sentiment towards Ethereum remains mixed at the moment. Sellers currently have the upper hand, but a break above $2,500 could pave the way for bullish momentum.
