Ethereum (ETH) is down more than 2% in the past 24 hours, according to data from CoinMarketCap. This negative price movement comes after an initial price rally for the token, which rose more than 19% following news of the approval of a Bitcoin spot ETF in the United States on Wednesday.
Interestingly, renowned cryptocurrency analyst Ali Martinez provided more insight into ETH’s downward trend, highlighting the next possible area of support for the cryptocurrency’s largest altcoin.
Ethereum Could Head to $2,450 – Analyst
Martinez shared in his January 11
For context, the Tom Demark Sequential indicator is a widely used TA tool used to identify trend exhaustion and predict possible trend reversals.
According to Martinez, the analysis tool shows that ETH’s price correction is due after a price surge that saw the asset trading above $2,700 in response to the U.S. stock exchange approving the launch of a Bitcoin spot ETF on the U.S. stock market. I gave it to you.
If the #Ethereum If you can’t hold above $2,530, the next stop is $2,450! https://t.co/wtjcdRTWnv
— Ali (@ali_charts) January 12, 2024
Interestingly, in a second post on January 12, the renowned cryptocurrency analyst doubled down on his prediction that the token is likely to trade as low as $2,450 if ETH bulls fail to keep the coin’s value above $2,530.
According to Martinez, ETH’s current negative price action appears to be a simple correction that is likely to be true as the general investor sentiment surrounding altcoins remains optimistic.
Earlier this week, NewsBTC reported that ETH investors are hyped for an Ether spot ETF in the U.S. after the SEC approved applications for 11 Bitcoin spot ETFs on Wednesday. Given ETH’s ranking as the second-largest cryptocurrency after Bitcoin and the growing number of Ether spot ETF applications, investors believe this altcoin could find favor with the SEC.
ETH price overview
As of this writing, Ethereum is trading at $2,548, down slightly 2.67% on the last day. However, altcoins performed well across the board last week with a notable gain of 14.48%. In addition to this positive story, ETH’s daily trading volume also increased by 22.25% and its current value stands at $26.8 billion.
ETH trading at $2,553 on the daily chart | Source: ETHUSDT chart on Tradingview.com
Featured image from Forbes, chart from Tradingview
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