Ethereum Analyst Highlights Critical Levels, Warns of Possible Drop to $2,850
Technical analyst Nik Patel highlights a critical phase for Ethereum, where upcoming sessions could determine its price direction. Key points include:
- ETH/USD Critical Levels: Ethereum must reclaim $4,093 to avoid flipping it into resistance, which would signal potential further declines. A successful reclaim and close above $4,400 could lead to new highs around $5,000.
- Market Structure: A weekly invalidation level at $3,700 suggests risk of decline to $2,850 if breached.
- Price Momentum: Daily analysis shows momentum exhaustion and the need for higher highs and lows to maintain upward trajectory.
- ETH/BTC Pair: Ethereum is likely forming its Q4 low against Bitcoin. Reclaiming levels like 0.0417 could drive the pair higher towards 0.055, with support zones at 0.0319.
The overall outlook hinges on Ethereum's ability to defend key levels, as failure to do so could result in substantial downward movement. As of now, ETH is trading at $3,872.
