Amid the ongoing bloodbath in the cryptocurrency market, Ethereum (ETH), the second largest cryptocurrency, Market capitalizationwas not spared. Over the past week, ETH experienced a significant 9% price decline, leading to the $3,130 level.
As market participants closely monitor the situation, attention now turns to key levels that must be held to prevent a deeper price pullback that could lead to significant losses and increased liquidation rates not seen in months.
The decisive moment for the price of Ethereum
Cryptocurrency analyst Inspo Crypto pointed out 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 the 1-day candle, will be a critical juncture in which it will be decided whether the bulls have capitulated or are able to gather strength.
A pullback above the aforementioned 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 a further decline towards $2,700, which would consequently affect altcoins and lead to significant losses across the market.
Uptrend to $5,000 if price holds at $3,170
The analyst added: claims that he believes Ethereum has been operating in a up-to-date trend channel since October 2013. Hence, if ETH manages to maintain the price in the $3170 range without breaking down, it will confirm the upward trajectory towards $5000. It is vital 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 in a downward phase from August 2023 to February 2024 and is currently heading towards $8,000 in the coming months.
However, it should be remembered that this analysis does not take into account external factors such as monetary policy decisions or geopolitical conflicts.
Nevertheless, if Ethereum manages to maintain the $3,170 level and starts growing, there is a possibility altcoin season is becoming more and more feasible, analyst suggests.
Ultimately, ETH’s next moves will impact its trajectory and affect the broader cryptocurrency landscape, particularly the altcoin market, which has also seen significant declines in recent days.
ETH is trading at $3,130 at the time of writing, reflecting a 5% decline in the past 24 hours. As a result, it becomes crucial for the token to close above the aforementioned critical $3,170 level in the coming hours to prevent potential additional losses, the analyst emphasizes.
Featured image from DALL-E, chart from TradingView.com
