Could Ethereum’s price plummet? One analyst thinks so.
Ethereum’s Ascending Channel
A chart analyst, Ali Martinez, recently pointed out an interesting pattern on Ethereum’s 12-hour price chart: an ascending parallel channel. Think of it as two upward-sloping parallel lines that the price has been bouncing between for a while. The bottom line acts as support (a price floor), while the top line acts as resistance (a price ceiling).
The chart shows Ethereum has been trading within this channel for years. Recently, the price briefly tested the lower support line around $2,500 and bounced back. However, it’s still pretty close to that line, suggesting another test might be coming.
The $2,500 Support Level: Make or Break
Martinez believes that $2,500 is a crucial support level.
- If it holds: Ethereum could rally towards $4,000, or even $6,000 (the top of the channel).
- If it breaks:
Ethereum could crash to $1,700 – a drop of over 39%!
Current Ethereum Price and Outlook
At the time of writing, Ethereum is trading around $2,800, down about 6% in the last week. Whether it will retest the $2,500 support level remains to be seen. This is a significant level to watch for anyone invested in Ethereum.
