Analyst Identifies Ethereum’s Ascending Support at $2,450 for Accumulation
Ethereum is trading at $2,500, following a 9% decline from recent highs after failing to exceed $2,820. This retracement has increased investor interest, with analyst Carl Runefelt indicating a favorable setup for accumulation.
Runefelt notes a bullish pattern in ETH's price action, suggesting this dip may be an optimal opportunity for long-term holders to increase their positions before a potential rally.
The upcoming days are critical for Ethereum as the market observes Bitcoin's attempt to break its all-time highs. A successful BTC breakout could signal a new bull run, potentially benefiting Ethereum. The crypto community is monitoring whether Ethereum can maintain support above $2,400 and overcome resistance at $2,820, which may lead to higher gains. Current consolidation suggests a decisive movement may occur soon, impacting ETH's position in the broader market cycle.
Ethereum Sideways Consolidation
Ethereum has underperformed compared to Bitcoin and other altcoins like Solana, prompting attention from analysts including Carl Runefelt. He highlights Ethereum's formation around an ascending support level, indicating a good accumulation opportunity ahead of a potential rally.
Runefelt identifies a crucial ascending support level near $2,450, which remains intact despite pullbacks, preserving a bullish structure. If Ethereum continues to decline, this support may attract long-term investors looking to buy ETH at lower valuations. The chart indicates a possible price floor that could prompt upward movement if buyers engage.
On the upside, Ethereum faces resistance at $2,800. Breaking this level could initiate a significant upward trend, aligning ETH with market movements if BTC reaches new all-time highs. A successful breach of $2,800 would confirm the bullish pattern and likely enhance ETH's price action, positioning it favorably among altcoins.
The next few days will be vital for Ethereum as it strives to maintain its position above the ascending support level. Investors are keenly observing if ETH can recover from its recent underperformance and reclaim leadership among altcoins.
ETH Technical Details
Currently, Ethereum is at $2,505 after a failed attempt to stay above the 4-hour 200 moving average (MA) at $2,530. This drop below the 200 MA places ETH in a vulnerable position as it seeks new demand levels. Approaching a key support area, a breach could lead to a significant correction, increasing downside risk.
To prevent a deeper decline, securing support around $2,450 is essential. If buyers maintain ETH above this level, it would indicate positive momentum. A rebound above $2,550 would further restore confidence and signal a potential recovery phase.
This move could signify the end of the retracement and set the stage for further increases. However, until solid support is established, ETH remains susceptible to additional declines, marking a critical point for its short-term outlook.
Featured image from Dall-E, chart from TradingView