Amid the current bloodbath in the cryptocurrency market, ethereum (eth), the second-largest cryptocurrency by market capitalizationhas not been spared. Over the past week, eth has seen a significant price drop of 9%, taking it to the $3,130 level.
As market participants continue to monitor the situation, attention now turns to crucial levels that must be held to avoid a deeper pullback that could lead to substantial losses and higher liquidation rates not seen in months.
Decisive moment for the price of ethereum
Cryptocurrency analyst “Inspo crypto” has drawn attention to the fact that the price of ethereum has retreated to levels last seen in early May.
x.com/InspoCrypto/status/1808893558255989152″ target=”_blank” rel=”nofollow”>According For the analyst, the next 8-hour trading period, represented by a 1-day candle, will be a critical moment to determine whether the bulls have capitulated or can stage a recovery.
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A pullback above the above-mentioned level could be considered a deviation from the bearish trend. However, if ethereum fails to retest the level, lower trend channel At $3,170, it could pave the way for a further decline towards $2,700, consequently impacting altcoins and triggering significant losses across the market.
Upward trajectory to $5,000 if price remains at $3,170
The analyst added: x.com/InspoCrypto/status/1808461252374507521″ target=”_blank” rel=”nofollow”>it states which, in his opinion, ethereum has been trading within a new trend channel since October 2013. Therefore, if eth manages to keep its price within the $3,170 range without breaking out, it would confirm an upward trajectory towards $5,000. It is important to note that this time frame extends until the end of the year.
Also, it should be noted that ethereum is still operating within a long term trend channel.
If the described scenario plays out, it would also confirm the long-term trend channel, indicating that eth was stuck in a bearish phase between August 2023 and February 2024 and is now embarking towards $8,000 in the coming months.
However, it is important to recognise that this analysis does not take into account external factors such as monetary policy decisions or geopolitical conflicts.
However, if ethereum manages to hold the $3,170 level and begins an upward climb, the possibility of a altcoin season is becoming increasingly feasible, as the analyst suggests.
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Ultimately, eth’s next moves will affect its trajectory and impact the broader crypto landscape, particularly the altcoin market, which has also seen significant losses in recent days.
eth is trading at $3,130 at the time of writing, reflecting a 5% drop over the past 24 hours. As a result, it becomes crucial for the token to close above the aforementioned critical level of $3,170 in the coming hours to avoid potential further losses, as emphasized by the analyst.
Featured image of DALL-E, chart from TradingView.com