After a slight price drop on Friday, ethereum (eth) has shown a lot of resilience, rising 2.84% in the last 24 hours. Commenting on the altcoin's possible next moves, crypto analyst Ali Martínez has painted a potential trajectory towards a new all-time high of $6,000.
ethereum now in critical support zone: here's why
In x.com/ali_charts/status/1850192223024853054″ target=”_blank”>a post On Saturday, Martinez shares that ethereum is currently testing a key support level at $2,400. Notably, ethereum fell to around $2,410 on Friday and has since remained in this price zone following a recent rejection at $2,500. According to Ali Martínez, eth must hold support at $2,400 to avoid breaking out of an ascending channel dating back to July 2023.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw”>#ethereum is testing a key support zone at $2,400. If this level is maintained, we could see twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw”>$eth Aiming for the upper limit of the channel near $6,000! pic.twitter.com/W8J8WVy5CL
—Ali (@ali_charts) twitter.com/ali_charts/status/1850192223024853054?ref_src=twsrc%5Etfw”>October 26, 2024
According to the analyst trading chart, a successful retest of the specified support zone will allow eth to surpass the $3,000 mark before experiencing consolidation between $3,350 and $3,750. Thereafter, another price breakout will occur which should push ethereum price to the upper end of its ascending channel around $6,000, indicating a potential 142% gain over the current market price of the asset.
However, if ethereum bulls fail to hold support at $2,400, the altcoin could fall by 40% and find a new support level at $1,500. To avoid significant losses in this high “risk to reward” situation, Ali Martínez x.com/ali_charts/status/1850270681843601766″ target=”_blank”>has advised Traders put a stop loss between $2,150 and $2,300.
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Coinbase Negative Premium Index Indicates Bearish Sentiment for eth Market
In other news, CryptoQuant analyst Darkfost eth-Institutionals-and-whales-are-selling-as-the-Coinbase-Premium-Index-is-highl” target=”_blank”>has noticed that the ethereum Coinbase Premium index is currently at -2 and is very negative. According to Darkfost, this development indicates that American institutional investors or market whales are currently aggressively dumping their eth holdings.
For short-term traders, this is a strong bearish signal as ethereum is likely to experience a downtrend in the coming days. However, Darkfost claims that long-term traders may want to use that price drop as a perfect accumulation opportunity.
At the time of writing, eth is trading at $2,473 per unit. While the altcoin might have posted a minor gain in the last day, a drop of 6.47% and 6.27% in the last seven and thirty days respectively, it still leaves investors much to be desired. Additionally, ethereum's daily trading volume, valued at $12.22 billion, reflects a 48.27% decline, representing reduced market liquidity and potential increased price volatility.
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