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ethereum is trading at a critical demand level following an 11% pullback from recent local highs. This drop has analysts and investors nervous, as losing this level could trigger a wave of aggressive liquidations, which could drive down eth prices.
However, amid this concern, prominent analyst Ali Martínez has shared an optimistic technical analysis, highlighting a strong risk-reward setup on the ethereum chart. According to Martínez, the current level offers a compelling entry point, suggesting ethereum could see significant upside if it holds support.
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The timing of this potential rally is especially notable with tomorrow's US election, an event that could greatly influence overall market sentiment. Many in the crypto community anticipate that the election results will set the stage for a new rally, with ethereum positioned to capitalize if bullish momentum returns.
In the coming days, all eyes will be on whether eth can defend this demand zone, as its performance could validate or challenge prevailing bullish expectations across the market. For now, ethereum's price level remains critical and the market is watching for directional signs amid the election and broader economic uncertainties.
Can ethereum Stay Above Key Demand?
ethereum is trading at a critical support level around $2,450, which many analysts see as a critical “last line of defense” for bulls. ethereum could see a deeper decline if this level fails, which could put it at risk of underperforming competitors like Solana or bitcoin, which have recently shown greater relative strength.
Investors share this concern and are closely watching eth's movement as it teeters on the edge of this crucial support.
However, top crypto analyst Ali Martínez has x.com/ali_charts/status/1853293933469553060″ target=”_blank” rel=”nofollow”>presented a more optimistic perspective on xsuggesting that ethereum may be poised for a significant recovery. In his recent technical analysis, Martínez emphasized that eth's current risk-reward ratio is very attractive for a long position, especially those with a longer-term perspective.
It revealed that it had set a stop loss below $1,880, a level that limits downside risk, while targeting an ambitious price of $6,000. This target represents a potential 145% rally from current prices, underscoring Martinez's confidence in ethereum's upside potential if it can hold this crucial zone.
The next few days, or even hours, could prove decisive for ethereum as it consolidates at $2,450. To move towards Martinez's goal, eth must strengthen and start challenging local highs, indicating that buyers are stepping in.
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The next price action will reveal whether ethereum can revive its bullish momentum or succumb to further downward pressure. For now, the $2,450 support is a critical threshold for eth's near-term trajectory.
eth Technical Analysis
ethereum (eth) is trading at $2,450 after a strong rebound following a failed break below the $2,400 mark. This resistance is encouraging for bulls who believe eth is poised for a significant rally, especially if bitcoin can surpass its all-time high.
However, this crucial support level alone is not enough to spark a sustained uptrend. The bulls must push the price above the 200-day EMA, currently at $2,762, to confirm the momentum and establish a stronger bullish outlook.
The 200-day EMA has acted as a formidable resistance since early August, repeatedly pushing the price of eth lower. A break above this moving average would indicate a critical reversal, potentially turning it into a new support level. This move would set the stage for eth to challenge higher levels, driven by renewed buyer confidence and broader market optimism.
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Conversely, if the bulls fail to reclaim this EMA, ethereum may face continued bearish pressure, leading to retests of key supports. For now, eth support around $2,450 keeps hope alive for bulls looking for a breakout, but reclaiming the 200-day EMA remains essential to powering the next leg of a bullish rally.
Featured image of Dall-E, TradingView chart
