Amid the ongoing bloodbath in the cryptocurrency market, the value of Ethereum (ETH), the second-largest cryptocurrency by market cap, has fallen. Market valueETH was not spared. Over the past week, ETH saw a massive 9% price drop, taking it to $3,130.
While market participants are closely monitoring the situation, the focus is now on the critical levels that must be held to prevent a deeper decline that would lead to significant losses and high liquidation rates not seen in months.
Crucial moment for Ethereum price
Cryptocurrency analyst Inspoo Crypto has noted that the price of Ethereum has returned to levels last seen in early May.
According to For the analyst, the upcoming 8-hour trading period, represented by a one-day candle, will serve as a crucial turning point to determine whether the bulls have capitulated or can rally back.
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A pullback above the mentioned level can be considered a deviation from the downtrend. However, if Ethereum fails to retest Down trend channel At $3,170, it could pave the way for further decline towards $2,700, thus impacting altcoins and leading to significant losses in the market.
Uptrend towards $5000 if price holds at $3170
The analyst added Confirms In his opinion, Ethereum has been operating within a new trend channel since October 2013. Therefore, if Ethereum can maintain its price within the $3,170 range without breaking down, it will confirm an upward trajectory towards $5,000. It is important to note that this time frame extends until the end of the year.
Additionally, it should be taken into account that Ethereum still operates within Long term trend channel.
If the described scenario comes true, it will also confirm the long-term trend channel, indicating that ETH was trapped in a bearish phase between August 2023 and February 2024 and is now heading towards $8,000 in the coming months.
However, it is important to realize that this analysis does not take into account external factors such as monetary policy decisions or geopolitical conflicts.
However, if Ethereum manages to hold the $3,170 level and starts an upward climb, the possibility of a sharp price drop will still exist. altcoin season It’s becoming increasingly feasible, the analyst suggested.
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Ultimately, ETH’s next moves will influence its trajectory and impact the broader crypto landscape, especially the altcoin market, which has also seen significant losses in recent days.
At the time of writing, ETH is trading at $3,130, reflecting a 5% decline in the past 24 hours. As a result, it is imperative for the coin to close above the aforementioned critical level of $3,170 in the coming hours to prevent further potential losses, the analyst emphasized.
Featured image by DALL-E, chart by TradingView.com