Ethereum Tests Key Support Level at $2,400 Amid Price Movements
After a slight price dip on Friday, Ethereum (ETH) has increased by 2.84% in the past 24 hours. Analyst Ali Martinez suggests a potential rise to an all-time high of $6,000.
Ethereum Now At Critical Support Zone
According to Ali Martinez, Ethereum is currently testing a key support level at $2,400. Ethereum fell to around $2,410 on Friday and remains in this zone following rejection at $2,500. Maintaining support at $2,400 is crucial to prevent breaking an ascending channel established since July 2023.
#Ethereum is testing a key support zone at $2,400. If this level holds, we might see $ETH aiming for the channel’s upper boundary near $6,000! pic.twitter.com/W8J8WVy5CL
— Ali (@ali_charts) October 26, 2024
If ETH successfully retests the support zone, it may exceed $3,000, followed by consolidation between $3,350 and $3,750. A subsequent breakout could push Ethereum's price toward $6,000, indicating a potential 142% gain from its current market price. Conversely, failing to hold the support at $2,400 may lead to a 40% decline, establishing a new support level at $1,500. To mitigate risks, traders are advised to set stop losses between $2,150 and $2,300.
Coinbase Premium Negative Index Signals Bearish Sentiment For ETH Market
CryptoQuant analyst Darkfost reports that the Ethereum Coinbase Premium Index is currently at -2, indicating bearish sentiment. This suggests that US institutional investors and market whales are offloading their ETH holdings.
This trend signals a likely downtrend for short-term traders, while long-term traders may consider this a buying opportunity. Currently, ETH trades at $2,473. Despite a minor daily gain, it has seen declines of 6.47% and 6.27% over the past week and month, respectively. Ethereum's daily trading volume stands at $12.22 billion, reflecting a 48.27% decrease, which indicates reduced market liquidity and increased price volatility.
Featured image from Dribble, chart from Tradingview