Ethereum has been stuck in a range between $2,350 and $2,500 for the past week. This sideways movement has left many investors unsure about what’s next for the cryptocurrency.
A Critical Price Point: $2,250
Crypto analyst Ali Martinez has identified a crucial price point for Ethereum: $2,250. This level, according to Martinez, could be the difference between a bullish recovery and a sharp decline.
The TD Setup: A Powerful Tool
Martinez uses a popular tool called the TD Setup to analyze Ethereum’s price action. This tool has historically been very accurate in predicting key reversals in Ethereum’s price.
- Breakouts: When Ethereum breaks above the TD setup’s resistance trendline, it has historically led to strong bull runs.
- Breakdowns: Conversely, when Ethereum dips below the setup’s support line, it has usually corrected by an average of 53%.
A Potential Correction Looms
The current TD setup places the critical price point at $2,250. If Ethereum breaks below this level, it could trigger a significant price drop. Based on historical data, a 53% correction could send Ethereum down to as low as $1,100.
Current Market Sentiment
As of now, Ethereum is trading slightly above the $2,250 threshold, but it’s still a very close call. The TD Setup indicates that a break below this level could signal a shift from bullish to bearish sentiment.
While sellers currently have the upper hand, a break above $2,500 could potentially push Ethereum towards a bullish momentum.
The next few days will be crucial for Ethereum’s price. Investors are closely watching the $2,250 level to see if it holds or breaks, as it could determine the direction of the cryptocurrency in the coming weeks.
