Amid the continued bloodbath within the cryptocurrency market, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has not been spared. Over the past week, ETH has experienced a big 9% price decline, bringing it all the way down to the $3,130 level.
As market participants closely monitor the situation, the main target now lies on crucial levels that have to be held back to forestall a deeper retrace that may lead to substantial losses and heightened liquidation rates not witnessed in months.
Make-Or-Break Moment For Ethereum Price
Crypto analyst “Inspo Crypto” has drawn attention that Ethereum’s price has retraced to levels last seen at the start of May.
According to the analyst, the upcoming 8-hour trading period, represented by a 1-day candle, can be a critical juncture to find out whether the bulls have capitulated or can muster a comeback.
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A retracement above the abovementioned level may very well be considered a deviation from the bearish trend. Nonetheless, if Ethereum fails to retest the lower trend channel at $3,170, it could pave the way in which for an extra decline towards $2,700, consequently impacting altcoins and resulting in significant losses across the market.
Upward Trajectory To $5,000 if Price Holds At $3,170
The analyst further asserts that, in his opinion, Ethereum has been operating inside a latest trend channel since October 2013. Hence, if ETH manages to carry its price inside the range of $3,170 without breaking down, it might confirm an upward trajectory towards $5,000. It can be crucial to notice that this timeframe extends until the top of the yr.
Moreover, it must be considered that Ethereum continues to be operating inside a long-term trend channel.
If the described scenario unfolds, it might also confirm the long-term trend channel, indicating that ETH was trapped in a bearish phase between August 2023 and February 2024 and is now embarking towards $8,000 over the approaching months.
Nonetheless, it’s crucial to acknowledge that this evaluation doesn’t account for external aspects corresponding to monetary policy decisions or geopolitical conflicts.
Nevertheless, if Ethereum manages to carry the $3,170 level and begins an upward ascent, the potential of an altcoin season becomes increasingly feasible, as suggested by the analyst.
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Ultimately, ETH’s next moves will affect its trajectory and impact the broader crypto landscape, particularly the altcoin market, which has also seen significant losses in recent days.
The 1-D chart shows ETH’s price drop on Thursday. Source: ETHUSD on TradingView.com
ETH trades at $3,130 on the time of writing, reflecting a 5% decline prior to now 24 hours. Consequently, it becomes crucial that the token closes above the aforementioned critical level of $3,170 in the approaching hours to forestall potential additional losses, as emphasized by the analyst.
Featured image from DALL-E, chart from TradingView.com