In the last week, the price of Ethereum has been stuck in a narrow range retracing between $2,500 and $2,350, making some investors wonder what’s next for the cryptocurrency. The uncertainty has killed off bulls.
Ethereum’s direction down from here, however, is dependent on breaking $2,250, says crypto analyst Ali Martinez. Martinez employed the TD Sequential Setup, a popular crypto analyst tool, to show this key level. By historical standards, Ethereum has a strong reaction to breaking above or below the TD setup, and so this is a good barometer for expected trend reversals.
Ethereum Bullish Momentum Threatened
As I recently tweeted on social media platform X, Martinez shared an ETH/USD price chart that illustrates how Ethereum’s price has reacted with the TD setup in the past. An break above the setup’s resistance line, likely results in a strong rally, and a break below the support line has resulted in steep corrections.
Ethereum’s first surge over the TD setup and its first dip under it saw ETH surge 8,885% and find its way to drop 56.67%. The TD setup has critical support at $2,250 right now. If ETH drops under this level, it could exceed a correction of over 53%, falling to $1,100 below, warns Martinez.
At the moment, ETH is trading at roughly $2,410; that being only 7% higher than the crucial $2,250 limit. As it stands though, this key level is something the price still wants to bounce off for now and so investors should keep an eye on it.
The TD Sequential indicator is famous amongst traders for detecting potential trend’s liquidation with indication of trends reversal. If ETH bullish momentum comes to an end, with a break below $2,250, the market mood can change to bearish. However, sellers currently have the upper hand, but a climb above $2,500 will set off another round of bullish energy.
