Ethereum (ETH) registered some minor gains previously week, rising by 2.80%. Nevertheless, the outstanding altcoin stays removed from breaking out of a downtrend stretching way back to December. Amid this bearish market state, renowned market analyst Ali Martinez has highlighted critical price levels in deciding if ETH’s correction is over and suitable for a market entry.
Ethereum: A Buying Opportunity Or More Downside Ahead?
In a detailed evaluation post on X, Martinez explains that Ethereum has crashed by 57% from its local peak of $4,100 in December. This decline has been attributed to a widespread distribution by large Ethereum holders, especially the whales. Over the past 4 months, wallets holding 10,000 ETH have declined by 80. Meanwhile, ETH whales i.e. wallets holding 100,000 ETH and above, have offloaded 130,000 ETH inside this era.
During ETH’s decline, the Ethereum Spot ETFs have also suffered massive withdrawals as indicated by a net outflow of $760 million in only the last month. Moreover, investors have transferred 100,000 ETH to investors with intentions to sell in fear of a price loss.
Looking forward, Martinez notes several technical indicators further suggest a downside for Ethereum amid this intense selling pressure. For instance, a breakdown from an ascending triangle on the 3-day charts suggests ETH could also be headed for a price goal of around $1,000.
Meanwhile, the ETH pricing bands have also highlighted $1,440 as one other downside goal indicating a possible 27.4% decline from current market prices. Interestingly, data from the Cost Basis Distribution correlates with each bearish projections as Ethereum is currently above key support at $1,887. Nevertheless, a price fall below this level will lead to an extra decline to lower targets akin to $1,440, $1250, and $1,000.
Albeit, Martinez notes there’s potential for an ETH market recovery. By analyzing the quantity of ETH acquired at each price level, the analyst notes that ETH bulls are facing a serious resistance between $2,250-$2,610. If ETH bulls can push past this resistance, it might invalidate the present bearish market outlook.
Ethereum Price Overview
On the time of writing, Ethereum was trading at $1,985 reflecting gains of 1.10% previously day and a pair of.10% previously seven days. Nevertheless, the altcoin is down by 27.32% within the last month. Being the biggest altcoin out there, Ethereum boasts a market cap of $239 billion representing 8.7% of the overall crypto market.
Featured image from Ledger Insights, chart from Tradingview
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