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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 sustainability of the second-largest cryptocurrency by value. Logistics.
Ethereum price rises to $6,000 if support at $2,300 holds
Ethereum is down 7% in the past two weeks, with a major support level now at $2,300. This support is crucial for bullish investors hoping for a rally that could push ETH to all-time highs.
According to technical analyst Ali Martinez, this moment is pivotal for Ethereum’s future price trajectory. Martinez suggests If ETH can maintain its support above $2,300, a rally towards $6,000 could be on the horizon.
This rally would increase significantly, exceeding Ethereum’s previous historical peak of $4,878 in November 2021. Bullish scenario However, this could translate to a significant increase of 150% from current trading levels.
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Conversely, if Ethereum fails to hold above the $2,300 support level in the short-term, Martinez warns that the Ethereum price could fall to around $1,600.
This would mean a decline of approximately 34% from current levels, exacerbating the crisis The losses you experienced During the previous market corrections on August 5 and September 6, when Ethereum fell by more than 20% on each occasion.
Of particular interest will also be a potential loss at the $2,000 level, which represents a psychological barrier that has not been breached since November 2023.
This time frame corresponds to a broader market uptrend that continues until the end of Q1 2024, underscoring the importance of the $2,300 support level to Ethereum’s bullish outlook.
ETH is underperforming the broader cryptocurrency market
In addition to the lack of bullish catalysts for the second largest cryptocurrency on the market, CoinGecko Data It indicates a noticeable lack of investor participation. Over the past 24 hours, Ethereum (ETH) recorded a trading volume of just 5%, equivalent to $14 billion.
Moreover, Ethereum is currently performing poorly compared to The broader cryptocurrency marketwhich rose by approximately 3%. In contrast, the price of ETH has fallen by approximately 6% over the past week, with losses exceeding 2% in the past 24 hours.
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This stagnation in prices may be related to the loss of the key moving averages (MAs) over the past two weeks. The 50 day EMA is currently above ETH trading price At $2,459, as marked by the blue line in the ETH/USDT daily chart below, which is currently acting as resistance for the token.
Overall, ETH should maintain support above the $2,300 level. Additionally, the token needs to identify a bullish catalyst that could push its price back above previously lost levels and target the next important milestone at $3,000, a limit that has not been reached since early August.
Featured image of DALL-E, chart from TradingView.com