A crypto analyst, Poseidon, has shared his prediction for Ethereum’s price. He believes that Ethereum could reach new highs if it manages to break through some key resistance levels.
Ethereum’s Support Level is Crucial
Poseidon highlights the $2,160-$1,900 price range as a critical support level for Ethereum. This range has acted as a key battleground for buyers and sellers since 2021. He believes that Ethereum recently retested this support level and that buying Ethereum at this point is a good opportunity.
However, he also acknowledges that a break below this support level could lead to a significant drop in price, potentially reaching as low as $1,000. But he believes this scenario is unlikely.
Ethereum’s Path to New Highs
Poseidon outlines a series of price targets for Ethereum, depending on its ability to break through specific resistance levels.
- $3,000 and $3,500: If Ethereum surpasses these levels, it could set the stage for a rally to new highs.
- $5,000: Breaking through this level could lead to a price range of $7,000-$8,000.
- Above $8,000: Poseidon believes that prices above this level would be risky and he would be cautious about holding onto Ethereum.
Technical Indicators to Watch
Poseidon emphasizes the importance of several technical indicators for Ethereum’s future price movement:
- 200-day EMA: Reclaiming and holding this level would signal strengthening momentum.
- Range Low: Maintaining support above this level is crucial for continued bullish sentiment.
- Daily Supply Zone: Overcoming this zone from $3,100 to $3,200 would solidify Ethereum’s upward trajectory.
The Importance of the H8 Timeframe
Poseidon highlights the H8 timeframe and its EMA200 as a key indicator for determining price trends. He believes this timeframe provides unique insights into shorter-term price movements and is crucial for his trading strategy.
Conclusion
While Poseidon acknowledges the current bearish sentiment and the challenges of breaking through resistance levels, he remains optimistic about Ethereum’s potential for growth. He believes that if Ethereum can maintain its support levels and overcome key resistance, it could reach new highs.
