Ethereum (ETH) has experienced notable volatility recently, falling from a one-month peak of almost $2,730 at the end of September to approximately $2,400, raising concerns about the medium-term sustainability of the price for the second-largest cryptocurrency by market cap.
Ethereum Could Soar to $6,000 If $2,300 Support Is Sustained
In the last two weeks, Ethereum has dropped 7%, with a crucial support level identified at $2,300. This level is essential for bullish investors who are hopeful for a bounce-back that could propel ETH to new all-time highs.
Technical analyst Ali Martinez states that this moment is crucial for Ethereum’s future price movements. Martinez indicates that if ETH can hold its support above $2,300, a surge toward $6,000 may be imminent.
Such an increase would considerably exceed Ethereum’s previous all-time high of $4,878 in November 2021. Should this bullish scenario come to fruition, it could represent a substantial 150% rise from current trading values.
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On the other hand, if Ethereum is unable to maintain its position above the $2,300 support in the near term, Martinez cautions that ETH’s price could slide down to approximately $1,600.
This would reflect a decline of nearly 34% from current levels, worsening the losses incurred during earlier market corrections on August 5 and September 6, when ETH plummeted more than 20% on each occasion.
The potential loss of the $2,000 threshold would also carry significant implications, representing a psychological barrier that has remained unbroken since November 2023.
This timeframe aligns with a broader market uptrend that persisted until the end of the first quarter of 2024, highlighting the critical nature of the $2,300 support level for Ethereum’s bullish outlook.
ETH Lags Behind the Broader Cryptocurrency Market
Alongside the lack of bullish triggers for the second-largest cryptocurrency, CoinGecko data shows a significant dip in investor participation. Over the last 24 hours, Ethereum (ETH) has logged a trading volume of just 5%, totaling $14 billion.
Furthermore, Ethereum is currently underperforming relative to the overall cryptocurrency market, which has seen a rise of nearly 3%. In contrast, ETH’s price has fallen by close to 6% over the past week, with losses exceeding 2% in the last 24 hours.
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This price stagnation may stem from losing critical moving averages (MAs) over the preceding two weeks. The 50-day MA is currently situated just above ETH’s trading price at $2,459, as depicted by the blue line in the ETH/USDT daily chart below, which currently serves as a resistance level for the token.
Overall, ETH must hold support above the $2,300 mark. Additionally, the token needs to discover a bullish catalyst that could drive its value back above previously lost levels and target the next major milestone at $3,000, a level that has not been achieved since early August.
Featured image from DALL-E, chart from TradingView.com
