In the midst of the recent turmoil in the cryptocurrency market, Ethereum (ETH) has not been immune to the chaos. With a notable 9% decrease in price over the past week, Ethereum now stands at the $3,130 level. Market watchers are keeping a close eye on the situation, with a particular focus on key levels that must be maintained to avoid a deeper decline that could result in considerable losses and increased liquidation rates unseen in quite some time.
Renowned crypto analyst “Inspo Crypto” has highlighted that Ethereum’s price has retraced to levels last observed in early May. Looking ahead, the upcoming 8-hour trading period, represented by a 1-day candle, will be crucial in determining whether the bulls have surrendered or can mount a recovery. A rebound beyond the aforementioned level could signal a deviation from the prevailing bearish trend. However, a failure by Ethereum to retest the lower trend channel at $3,170 might pave the way for a further drop towards $2,700, impacting altcoins and triggering substantial losses across the market.
Offering his perspective, the analyst suggests that Ethereum has been moving within a new trend channel since October 2013. Should ETH maintain its price within the $3,170 range without breaking down, it could confirm an upward trend towards $5,000. This trajectory is expected to last until the end of the year. Moreover, Ethereum is still operating within a long-term trend channel, indicating a potential shift from a bearish phase between August 2023 and February 2024 towards $8,000 in the ensuing months.
It is important to bear in mind that this analysis does not factor in external influences like monetary policy decisions or geopolitical tensions. However, if Ethereum can hold the $3,170 level and initiate an upward movement, the likelihood of an altcoin season becomes more plausible, according to the analyst. The future movements of ETH will not only shape its trajectory but also have a significant impact on the wider crypto landscape, especially the altcoin market, which has witnessed substantial losses lately.
At the time of writing, ETH is trading at $3,130, reflecting a 5% decline in the past 24 hours. It is crucial for the token to close above the critical level of $3,170 in the upcoming hours to avert potential additional losses, as stressed by the analyst. The fate of Ethereum hangs in the balance as market forces continue to fluctuate, shaping the future of the cryptocurrency and influencing the broader digital asset market.