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ethereum (eth) has seen significant volatility in recent weeks, falling from a one-month high of nearly $2,730 in late September to around $2,400, raising concerns about the medium-term price sustainability of the second largest cryptocurrency by market capitalization.
ethereum Rebounds to $6,000 if $2,300 Support Holds
ethereum has fallen 7% over the past two weeks, with a key support level now at $2,300. This support is crucial for bullish investors hoping for a resurgence that could take eth to new all-time highs.
According to technical analyst Ali Martínez, this moment is fundamental for the future trajectory of the price of ethereum. Martinez x.com/ali_charts/status/1843392605486510590″ target=”_blank” rel=”nofollow”>suggests that if eth can maintain its support above $2,300, a rally towards $6,000 could be on the horizon.
Such a surge would rise significantly, surpassing ethereum's previous all-time peak of $4,878 in November 2021. If this bullish scenario If developed, it could translate into a substantial 150% increase from current trading levels.
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Conversely, if ethereum fails to stay above the $2,300 support level in the near term, Martínez warns that the eth price could fall to around $1,600.
This would mean a decrease of almost 34% from current levels, exacerbating the losses experienced during previous market corrections on August 5 and September 6, when eth fell more than 20% on each occasion.
The possible loss of the $2,000 mark would also be particularly significant, marking a psychological barrier that has not been surpassed since November 2023.
This time period corresponds with a broader market uptrend that continued until the end of Q1 2024, underscoring the importance of the $2,300 support level for ethereum's bullish prospects.
eth is underperforming the broader crypto market
In addition to the absence of bullish catalysts for the second largest cryptocurrency on the market, CoinGecko ethereum” target=”_blank” rel=”nofollow”>data indicates a notable lack of investor commitment. In the last 24 hours, ethereum (eth) recorded a trading volume of only 5%, amounting to $14 billion.
Furthermore, ethereum is currently underperforming broader cryptocurrency marketwhich has risen almost 3%. In contrast, the price of eth has fallen almost 6% over the last week, with losses of more than 2% in the last 24 hours.
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This price stagnation may be related to the loss of key moving averages (MAs) over the past two weeks. The 50-day MA is currently just above eth trading price to $2,459, as illustrated by the blue line on the eth/USDT daily chart below, which is currently acting as a resistance for the token.
Overall, eth should hold support above the $2,300 level. Additionally, the token needs to identify a bullish catalyst that can push its price back above previously lost levels and aim for the next significant milestone at $3,000, a threshold that has not been reached since early August.
Featured image of DALL-E, chart from TradingView.com
