Ethereum’s price has been consolidating in a sideways movement between $2,500 and $2,350 over the past week, leaving investors uncertain about its future trajectory. This lack of clear direction has dampened the bullish sentiment among many traders.
Crypto analyst Ali Martinez recently conducted an analysis using the TD Setup to identify a critical price level that could determine Ethereum’s price movement. According to Martinez, the $2,250 price point is crucial, as it could be the deciding factor between a bullish recovery or a significant correction.
The TD Setup is a popular tool among crypto analysts for predicting key reversal points in asset prices. Past data has shown that Ethereum has reacted strongly after breaking above or below the TD Setup. Martinez shared a chart on X platform, highlighting how breaking above the TD Setup resistance trendline has led to substantial bullish runs, while breaking below has resulted in significant corrections.
Historical data shows that the first breakout above the TD Setup resistance triggered an 8,885% surge in Ethereum’s price, reaching an all-time high of $1,138. Conversely, breaking below the TD Setup led to a 56.67% correction. The most recent breakout in March saw Ethereum surge by 113% as it crossed the $4,000 mark for the first time in two years.
Currently, the TD Setup is indicating a critical level around $2,250 for Ethereum. Martinez warns that a break below this level could result in a significant price drop, potentially correcting to as low as $1,100 based on historical averages.
As of now, Ethereum is trading around $2,410, holding above the $2,250 threshold identified by the TD Setup. However, its proximity to this key level makes it essential to monitor closely for any potential price movements.
The TD Sequential indicator is crucial in identifying exhaustion points in an asset’s trend. A break below $2,250 could signal a reversal from a bullish to a bearish sentiment for Ethereum. Market sentiment towards Ethereum is currently mixed, with sellers having the upper hand. However, breaking above $2,500 could pave the way for a bullish momentum to resume.
In conclusion, Ethereum’s price movement remains uncertain, with the $2,250 level playing a pivotal role in determining its future trajectory. Traders and investors should keep a close eye on this key level for any potential breakout or correction in Ethereum’s price.