ethereum has largely shown sideways movement between $2,500 and $2,350 over the past seven days. This sideways movement has yet to give rise to a clear path for how the cryptocurrency will behave in the future, which affects the sentiment of many bulls.
In an interesting analysis using TD Setup, crypto analyst Ali Martinez highlighted a critical price point that investors should watch in the price trajectory of eth. At the center of this analysis is the price of $2,250, a level that could be the line between a bullish recovery and a sharp correction.
eth price must contain $2250
The TD setup is very popular among crypto analysts and investors. Historically, ethereum has shown a clear reaction after breaking above or below the TD setup. Its reliability in identifying key reversal points has made it a reference tool for analysts like Ali Martínez.
Using an eth/US dollar price chart he shared on social media platform x.com/ali_charts/status/1844285488607395859″>Martínez pointed out that TD Sequential has made or broken cryptocurrency price action in the past while also highlighting notable examples. Every time eth price broke above the TD setup resistance trend line, a strong bull run always followed. On the other hand, when eth fell below the setup support line, it corrected by an average of 53%.
The first significant break above the TD setup resistance triggered an 8,885% surge, sending eth price to an all-time high of $1,138 at the time. In contrast, the first time eth price fell below the TD setup, it corrected by 56.67%. The last break above the TD setup came in March this year, when eth price surged by approximately 113% as it crossed above $4,000 for the first time in two years.
<img class="alignnone size-medium wp-image-647500 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/10/Ethereum-TD-Setup-Why-ETH-Price-Should-Be-2250.png" alt="ethereum” srcset=”https://www.newsbtc.com/wp-content/uploads/2024/10/Ethereum_c347dd.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/10/Ethereum_c347dd.png?w=460 460w” />
Recent price dynamics place TD's setup around $2,250. According to Ali Martínez, a drop below this price could cause a significant price drop. If a historical average of 53% were to repeat, ethereum could correct to a low of $1,100.
Current market outlook
At the time of writing, ethereum is trading at approximately $2,410, approximately 7% above the critical threshold of $2,250 identified by the TD setup. While 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, whether bullish or bearish. Therefore, a break below $2250 could mean the ethereum-fundamentals-hint-at-upside-potential-as-staking-hits-29-high/”>final reversal of a bullish ethereum to a bearish sentiment.
Market sentiment towards ethereum remains mixed at the moment. ethereum-whales-relentlessly-selling-6-months-data/”>Sellers currently have the advantagebut a break above $2,500 could pave the way for bullish momentum.
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