Ethereum (ETH) Nearing Critical Support Level, Analyst Warns
Renowned crypto trader and analyst Ali Martinez has raised concerns about the price of Ethereum (ETH) as it approaches a crucial support level. Martinez, who commands a following of 123,000 on the social media platform X, has warned that Ethereum could witness a significant drop of approximately 39% if it fails to hold above the support level at $2,500, potentially plummeting to $1,700.
As of the time of writing, Ethereum is valued at $2,712. Martinez’s analysis indicates that Ethereum is currently hovering slightly above the lower trendline of an ascending channel pattern on the 12-hour time frame. While an ascending channel pattern is typically seen as a bullish signal, a potential breakout below the lower trendline could signal a bearish reversal in the near future.
Despite the cautionary outlook, Martinez remains optimistic about Ethereum’s prospects if it manages to maintain above the $2,500 support level. According to his analysis, Ethereum could potentially surge by up to 117% from its current price level.
“If Ethereum manages to stay above $2,500, there is a possibility for a rebound towards $4,000 or even $6,000,” Martinez stated.
Avalanche (AVAX) Faces Bearish Scenario, Analyst Predicts
Turning his attention to the native token of the layer-1 blockchain Avalanche (AVAX), Martinez has warned of a potential downturn in its price. Martinez suggests that AVAX could experience a decline of approximately 22% following a breakdown below the lower trendline of a symmetrical triangle pattern.
Symmetrical triangles are known to be either bullish or bearish depending on the direction of the breakout. In this case, a breakdown below the lower trendline indicates a bearish outlook for AVAX.
At the time of writing, AVAX is trading at $25.68.
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