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Ethereum is trading at critical demand levels after falling 11% from recent local highs. These declines have analysts and investors nervous. Losing this level could trigger an aggressive selloff and potentially push the price of ETH lower.
However, amidst these concerns, prominent analyst Ali Martinez shared a bullish technical analysis, highlighting a strong risk-versus-reward setup on the Ethereum charts. According to Martinez, current levels provide an attractive entry point, suggesting that Ethereum could see a significant upside if it receives support.
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The timing of this potential rebound is especially noteworthy with tomorrow’s US election. This is an event that can have a big impact on broader market sentiment. Many in the cryptocurrency community expect the election results to set the stage for a new rally, and Ethereum is positioned to take advantage if bullish momentum returns.
Going forward, all eyes will be on whether ETH can defend this demand area. That’s because its performance could validate or challenge the bullish expectations prevalent across the market. For now, Ethereum’s price levels remain pivotal, with the market closely watching for signs of direction amid the election and broader economic uncertainty.
Can Ethereum sustain above mainstream demand?
Ethereum is trading at a pivotal support level around $2,450, which many analysts see as a critical “last line of defense” against the bulls. If this level fails, Ethereum could suffer a deeper downside and risk underperforming competitors such as Solana and Bitcoin, which have shown relative strength recently.
Investors share these concerns and are closely watching ETH’s movements as it stands on the edge of this important support.
However, top cryptocurrency analyst Ali Martinez offered a more optimistic outlook for X, suggesting that Ethereum could see a significant recovery. In a recent technical analysis, Martinez highlighted that ETH’s current risk-to-reward ratio makes it very attractive for long-term positions, especially those with a long-term outlook.
He said he had set a stop loss below $1,880, a level that would limit downside risk while targeting an ambitious price of $6,000. This target represents a potential 145% upside from the current price, highlighting Martinez’s confidence in Ethereum’s potential upside if it can hold in this critical area.
The coming days and even hours could prove decisive as Ethereum consolidates towards $2,450. To move towards Martinez’s goal, ETH would need to build strength and start challenging local highs, sending a signal that buyers are getting involved.
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The upcoming price action will show whether Ethereum can revive its bullish momentum or succumb to further downward pressure. The current $2,450 support is an important threshold for ETH’s near-term trajectory.
ETH technical analysis
Ethereum (ETH) is trading at $2,450 after a strong rebound after failing to fall below the $2,400 level. This resilience is especially encouraging for bulls who believe ETH is poised for a significant upside if Bitcoin can surpass its all-time high.
However, this critical support level alone is not enough to trigger a sustained upward trend. Bulls would need to push the price above the 200-day exponential moving average (EMA), currently at $2,762, to confirm momentum and establish a stronger bullish outlook.
The 200-day EMA has acted as a strong resistance force since early August, continuously driving the price of ETH lower. A break above this moving average would signal a significant change and could potentially translate into a new support level. This move will set the stage for ETH to challenge higher levels, fueled by renewed buyer confidence and broader market optimism.
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Conversely, if the bulls fail to reclaim this EMA, Ethereum could face continued downward pressure, which could lead to a further test of key support. ETH’s current support around $2,450 maintains hopes for the bulls targeting a breakout, but reclaiming the 200-day EMA remains essential to fuel the next phase of the bullish rally.
Featured image by Dall-E, chart by TradingView