Ethereum, the second-largest cryptocurrency by market capitalization, is facing potential downward pressure in the near future, according to analyst Ali Martinez. Martinez suggests that Ethereum could drop as low as $2,850 based on his analysis.
Martinez’s analysis reveals that approximately 2 million Ether addresses acquired around 1.64 million ETH within a specific price range of $2,846 to $2,951. This concentration of holdings within this range indicates a potential area of support, but also highlights the risk of a sell-off if market sentiment continues to deteriorate.
In addition, daily Fibonacci retracement levels further complicate Ethereum’s short-term outlook, suggesting crucial support levels between $3,193 and $3,298. It is essential for Ethereum’s price against the US dollar to maintain support within this range in the coming days. Failure to do so could potentially lead to a capitulation, pushing the ETH price below the psychologically significant $2,000 mark.
As the cryptocurrency market grapples with bearish sentiment in anticipation of the Bitcoin halving, Ethereum finds itself in the spotlight. While Ethereum’s long-term fundamentals remain strong, with the upcoming Ethereum 2.0 upgrade promising enhanced scalability and efficiency, short-term price action may be influenced by overall market sentiment and the impact of the Bitcoin halving.
To mitigate risks and make informed decisions, Ethereum investors and traders must exercise caution and closely monitor key support and resistance levels. By staying attuned to market dynamics and adapting strategies accordingly, investors can potentially navigate the short-term fluctuations and position themselves for long-term success.