Ethereum has largely shown sideways movement between $2,500 and $2,350 over the past seven days. This sideways move has yet to provide a clear path as to how the cryptocurrency will perform in the future, which is deteriorating the sentiment of many bulls.
In an compelling analysis using the TD setup, cryptocurrency analyst Ali Martinez highlighted a critical price point that investors should watch in ETH’s price trajectory. At the heart of this analysis is the price of $2,250, a level that could mark the boundary between a bullish recovery and a keen correction.
The ETH price must remain at $2,250
The TD setup is very popular among cryptocurrency analysts and investors. Historically, Ethereum has shown a clear reaction after breaking above or below the TD setup. Its reliability in pinpointing key turning points has made it a popular tool for analysts like Ali Martinez.
Using the ETH/US Dollar price chart shared on X’s social media platform, Martinez noticed this TD Sequential has made or broken cryptocurrency price action in the past while highlighting notable examples. Whenever the price of ETH broke above the TD setup resistance trend line, there was always a mighty bull run. On the other hand, when ETH dropped below the setup support line, it corrected by an average of 53%.
The first significant break above the TD setup resistance resulted in an 8,885% rally, sending the ETH price to an all-time high of $1,138 at the time. Conversely, the first time the ETH price dropped below the TD setup, it corrected by 56.67%. The last break above the TD configuration occurred in March this year, when the price of ETH surged by approximately 113%, crossing above $4,000 for the first time in two years.
Recent price dynamics put the TD kit at around $2,250. According to Ali Martinez, breaking below this price level could result in a significant price drop. If the historical average of 53% were to repeat, Ethereum could correct to as much as $1,100.
A current snapshot of the market
At the time of writing, Ethereum is trading around $2,410, about 7% above the critical $2,250 threshold identified by the TD setup. While the ETH price has managed to stay above this level for now, 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, both bullish and bearish. Therefore, a break below $2,250 could mean final reversal from bullish Ethereum on bearish moods.
Market sentiment towards Ethereum remains mixed at the moment. Currently, sellers have the advantagebut a break above $2,500 could set the path for upward momentum.
