9 October 2024
Ethereum (ETH) has seen significant volatility in recent weeks, dropping from a one-month high of nearly $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 market capitalization.
Ethereum Rally To $6,000 If $2,300 Support Holds
Ethereum has fallen 7% in the past two weeks, with a key support level now at $2,300. This support is crucial for bullish investors hoping for a resurgence that could push ETH to new all-time highs.
According to technical analyst Ali Martinez, this moment is pivotal for Ethereum’s future price trajectory. Martinez suggests that if ETH can maintain its support above $2,300, a rally toward $6,000 might be on the horizon.
Such a surge would significantly increase, surpassing Ethereum’s previous all-time peak of $4,878 in November 2021. If this bullish scenario plays out, it could translate to a substantial 150% increase from current trading levels.
Conversely, if Ethereum fails to hold above the $2,300 support level in the short term, Martinez warns that ETH’s price could drop to around $1,600.
This would signify a decline of nearly 34% from current levels, exacerbating the losses experienced during previous market corrections on August 5 and September 6, when ETH fell by more than 20% on each occasion.
The potential loss of the $2,000 mark would also be particularly significant, marking a psychological barrier that has not been breached since November 2023.
This time frame corresponds with a broader market uptrend that continued until the end of the first quarter of 2024, underscoring the importance of the $2,300 support level for Ethereum’s bullish outlook.
ETH Underperforms Broader Crypto Market
In addition to the absence of bullish catalysts for the second-largest cryptocurrency in the market, CoinGecko data indicates a notable lack of investor engagement. Over the past 24 hours, Ethereum (ETH) recorded a trading volume of only 5%, amounting to $14 billion.
Moreover, Ethereum is currently underperforming compared to the broader cryptocurrency market, which has risen nearly 3%. In contrast, ETH’s price has declined by almost 6% over the past week, with losses exceeding 2% in the last 24 hours.
This price stagnation may be linked to losing key moving averages (MAs) over the past two weeks. The 50-day MA is currently positioned just above ETH’s trading price at $2,459, as illustrated by the blue line in the ETH/USDT daily chart below, which currently acts as a resistance for the token.
Overall, ETH must maintain support above the $2,300 level. Additionally, the token needs to identify a bullish catalyst that could drive its price back above previously lost levels and target the next significant milestone at $3,000, a threshold that has not been reached since early August.
Featured image from DALL-E, chart from TradingView.com