Ethereum has largely shown sideways movement between $2,500 and $2,350 in the past seven days. This sideways movement has not yet led to a clear path for how cryptocurrencies will perform going forward, dampening the sentiment of many bulls.
In an interesting analysis with TD Setup, cryptocurrency analyst Ali Martinez highlighted a critical price point that investors should keep an eye on in ETH’s price trajectory. At the heart of this analysis is the $2,250 price point, a level that could be the dividing line between a bullish recovery and a sharp correction.
ETH price should reach $2,250
The TD setup is very popular among cryptocurrency analysts and investors. Historically, Ethereum has shown a clear reaction after a breakout above or below the TD setting. Its reliability in identifying key reversal points has made it a favorite tool for analysts like Ali Martinez.
Using the ETH/USD price chart he shared on social media platform X, Martinez pointed this out TD Sequential has made or broken cryptocurrency price action in the past while also highlighting notable examples. Every time ETH price breaks through the TD setup resistance trend line, a strong uptrend always follows. On the other hand, when ETH price fell below the setup support line, it corrected by an average of 53%.
The first major breakout above the resistance of the TD setup led to an 8,885% rally, taking the price of ETH to an all-time high of $1,138 at the time. Conversely, the first time ETH price fell under the TD setup, it corrected by 56.67%. The last breakout above the TD setup occurred in March of this year, which saw the price of ETH surge by around 113% as it surpassed $4,000 for the first time in two years.
Recent price dynamics place the TD setup at around $2,250. According to Ali Martinez, a break below this price point could lead to a significant price drop. If the historical average of 53% repeats itself, Ethereum could correct to as low as $1,100.
Current market snapshot
As of the time of writing, Ethereum is trading at approximately $2,410, roughly 7% above the $2,250 critical threshold set by the TD setup. While ETH price has managed to stay above this level at the moment, its proximity to this key price level makes it a critical level to watch.
The TD Sequential indicator identifies potential exhaustion points in an asset’s trend, whether bullish or bearish. Therefore, a break below the $2,250 level could mean this is happening Final reversal from bullish Ethereum For bearish sentiment.
Market sentiment towards Ethereum remains mixed at the moment. Sellers currently have the upper handBut a break above $2,500 could pave the way for upward momentum.
Comments are closed, but trackbacks and pingbacks are open.