Fun

Is It Time To Give Up On Ethereum Below $4,000? Analyst Weighs The Facts

News Feed - 2025-01-22 03:01:15

Este artículo también está disponible en español.


Crypto analyst Ali Martinezhas discussed Ethereum current price action as the second largest crypto by market cap remains below $4,000. The analyst outlined some facts to give a clearer picture of whether or not it is the right time to give up on ETH.  Analyst Discusses Whether It Is Time To Give Up On Ethereum


In an X post, Ali Martinez outlined certain facts to determine whether it is time to give up on Ethereum. First, the analyst noted that ETH has been one of the weakest performers lately, a development that looks to have prompted Vitalik Buterinto shake things up by changing the Ethereum Foundation’s leadership team. Related Reading Ethereum Gets Massive $12,000 Price Tag From Research Lead Ahead Of Major Upgrade 1 week ago


Martinez then alluded to historical datashowing that Ethereum performs well in the first quarter of each year. The analyst had previously hinted that this year is unlikely to be different. Back then, he noted that ETH delivers its strongest performance in Q1, particularly in odd-numbered years, and 2025 is one such year. ETH Q1 performances over the years | Source: Ali Martinez on X


Given Ethereum’s positive Q1 performance, Martinez remarked that this could explain why crypto whaleshave accumulated over $1 billion worth of ETH in the past week alone. He previously revealed that these whales had bought over 330,000 ETH, valued at over $1 billion. 


Furthermore, the crypto analyst remarked that the buying pressure is also evident in the exchange outflows, with nearly $2 billion in Ethereum withdrawn from crypto platforms over the past month. Specifically, 540,000 ETH, worth $1.84 billion, were withdrawn from exchanges over the past month. This accumulation trend is a positive as it indicates investors are still bullish on ETH. 


However, for Ethereum to break out bullishly, Martinez mentioned that it must overcome several key resistance levels. From an on-chain perspective, the crypto analyst highlighted the $3,360 to $3,450 zone as the major supply wall. This range is the most critical resistance level for ETH, while the key support zone is between $3,066 and $3,160.  From A Technical Analysis Perspective


Martinez also provided insights into the Ethereum price action from a technical analysis perspective. He stated that ETH appears to be forming the right shoulder of a head-and-shoulders pattern, with a neckline of $4,000. He added that a decisive breakout above this level could fuel a rally toward $7,000. Related Reading Ethereum’s Large Consolidation Trend Points To Possible Price Explosion To $8,000 3 weeks ago


The crypto analyst also revealed that this upside target aligns with the Ethereum 3.2 Market Value to Realized Value(MVRV) Pricing Band, which is currently hovering around $7,000. Amid this bullish outlook, Martinez mentioned that one concerning sign is Ethereum’s network growth, which has slowed down. The number of new ETH addresses is said to have declined by 9.32%, indicating reduced adoption. 


Despite that, Martinez believes that Ethereum’s outlook is still bullish. He told market participants to keep an eye on the $2,700 to $3,000 support zone. According to him, this demand zone must hold to maintain ETH’s bullish outlook. 


At the time of writing, Ethereum is trading at around $3,200, down 4% in the last 24 hours, according to datafrom CoinMarketCap. ETH trading at $3,295 on the 1D chart | Source: ETHUSDT on Tradingview.com Featured image from Adobe Stock, chart from Tradingview.com

News Feed

Interest in Bitcoin Soars in Egypt Amid Economic Crisis and Unemployment
Interest in Bitcoin Soars in Egypt Amid Economic Crisis and UnemploymentA growing number of Egyptians are reportedly turning to bitcoin amid rising unemployment and the economic cri
CryptoPunks record another $16M NFT sale in March
Ezra Reguerra13 hours agoCryptoPunks record another $16M NFT sale in MarchCryptoPunk #7804 sold for 4,850 ETH, worth about $16.4 million, taking the record for the second-largest CryptoPunk NFT sale.993 Total views4 Tota
Aussie admits to promoting BitConnect crypto services without a license
Ciaran Lyons3 hours agoAussie admits to promoting BitConnect crypto services without a licenseThe Australian Securities and Exchange Commission claims that John Louis Anthony Bigatton promoted the crypto lending platform
SEC’s Gary Gensler gets irked being asked about crypto
Jesse Coghlan6 hours agoSEC’s Gary Gensler gets irked being asked about cryptoSEC Chair Gary Gensler says he gets an “outsized ratio” of questions about crypto despite its relatively small size compared to the over
Nvidia overtakes Tesla as most-traded stock, while AI boosts revenue 265%
Arijit Sarkar3 hours agoNvidia overtakes Tesla as most-traded stock, while AI boosts revenue 265%Nvidia also overtook Elon Musk’s Tesla as Wall Street’s most-traded stock in the United States over the last 30 trading
Tokenizing music catalogs: The next frontier for Web3 and music industry
Savannah Fortis10 hours agoTokenizing music catalogs: The next frontier for Web3 and music industryAt the Proof of Talk 2024 conference in Paris, Serio Mottola, CEO of Music Protocol, advocated for integrating blockchain
Hundreds of Millions Worth of ‘Sleeping Bitcoins’ Woke up After BTC’s Mid-November Price High
Hundreds of Millions Worth of "Sleeping Bitcoins" Woke up After BTC"s Mid-November Price High On Sunday, December 19, a dormant address that received 235 bitcoin in 2013 was activa
NYDFS Releases Guidance on Importance of Segregation and Separate Accounting for Customer Funds in Crypto Industry
NYDFS Releases Guidance on Importance of Segregation and Separate Accounting for Customer Funds in Crypto Industry On Monday, the New York Department of Financial Services (NYDFS)
Remilia hacker moves $4.3M to Tornado Cash
Ezra Reguerra14 hours agoRemilia hacker moves $4.3M to Tornado CashOn March 16, millions of dollars worth of non-fungible tokens and Ether was stolen from the Remilia DAO and transferred to an unknown wallet address.1231
Bitcoin Could Reclaim Its Peak, Hit $20,000 by Year-End: Novogratz
Some in the crypto community were left wondering if Michael Novogratz was still bullish on bitcoin after he recently took some bitcoin profits and kicked himself for not taking more. Being the astute trader that he is, N
Binance-backed pSTAKE Finance launches Bitcoin liquid staking solution
Zoltan Vardai10 hours agoBinance-backed pSTAKE Finance launches Bitcoin liquid staking solutionpSTAKE is among the most recent protocols making Bitcoin a yield-generating asset with more capital efficiency.1669 Total vie
CoinEx 2022 Year in Review: New Slogan, Better Product, and More User-Friendly Services
CoinEx 2022 Year in Review: New Slogan, Better Product, and More User-Friendly Services press release PRESS RELEASE. 2022 is an extraordinary year for the crypto industry, and it is