Fun

Ethereum Could Crash To $1,700 If This Support Fails, Analyst Says

News Feed - 2025-02-07 08:02:58

Este artículo también está disponible en español.


An analyst has explained how Ethereum (ETH) could see its price crash to $1,700 if the support level of this technical analysis (TA) pattern fails. Ethereum Could Be In Danger Of Falling Under Ascending Channel Support


In a new post on X, analyst Ali Martinez has discussed about where Ethereum could head next based on a pattern forming in its 12-hour price chart. The pattern in question is an Ascending Parallel Channel from TA, which, as its name implies, involves two parallel trendlines that are sloped upwards. Related Reading Ethereum Recovers To $2,800 As Exchange Outflows Near $1 Billion 1 day ago


When the asset is inside this channel, it goes through consolidation towards a net upside. The higher tops in its price trace the upper line of the pattern, while the higher lows draw the lower level.


Like other TA patterns, the former line is assumed to act as a source of resistance in the near future and the latter as a point of support. Breaks out of either of these boundaries can imply a continuation of trend in that direction.


The Ascending Parallel Channel isn’t the only parallel channel in TA. When parallel consolidation happens towards the downside instead, the formation is known as a Descending Parallel Channel. Neither of these are the most commonly observed type, though, as that title is held by the basic Parallel Channel, which has its trendlines parallel to the time-axis (that is, they have zero slope).


Now, here is the chart shared by the analyst that shows the Ascending Channel that the 12-hour price of Ethereum has been trading inside for the last few years: The 12-hour price of the asset appears to have been approaching the lower line of the pattern in recent days | Source: @ali_charts on X


From the graph, it’s apparent that the Ethereum half-day price saw a very brief retest of the Ascending Channel’s lower level recently. The coin found support then, but its value is still floating quite close to the line, meaning that another retest could potentially happen soon. The level is currently situated at $2,500.


During the last few years, this line has continuously held for the cryptocurrency, so it’s possible that it may do so again in the near future. “If Ethereum $ETH holds above $2,500, it could rebound toward $4,000 or even $6,000,” notes Martinez.


The former target is around halfway through the channel from the current mark, while the latter corresponds to the upper level. The last time that ETH topped out was near the former line. Related Reading Chainlink Witnesses Highest Whale Activity Since 2023, Price Reversal Coming? 17 hours ago


“However, if $2,500 fails as support, the next target shifts to $1,700!” warns the analyst. From the current price of the coin, a crash to this target would mean a decrease of more than 39%.


It now remains to be seen whether Ethereum will retest the lower level of the Ascending Channel again in the coming days or not. ETH Price


At the time of writing, Ethereum is floating around $2,800, down more than 6% over the last seven days. The price of the coin seems to have seen a bit of a rebound since its low | Source: ETHUSDT on TradingView Featured image from Dall-E, charts from TradingView.com

News Feed

THORChain (RUNE) Tipped For 70% Decline Amid North Korean Transactions Debacle
Este artículo también está disponible en español. RUNE, the native token of the THORChain protocol, remains under significant bearish pressure following a 9.09% price dec
UK’s Standard Chartered to Offer Crypto Brokerage Services in Ireland
UK’s Standard Chartered to Offer Crypto Brokerage Services in Ireland British bank Standard Chartered will offer cryptocurrency broker services in Ireland thro
OrdiZK bridge vanishes in alleged $1.4M rug pull: CertiK
Christopher Roark1 hour agoOrdiZK bridge vanishes in alleged $1.4M rug pull: CertiKThe team allegedly sold hundreds of millions of tokens into the market and then disappeared from social media.826 Total views5 Total shar
South African Central Bank Governor: Regulators and Policymakers Must Be Involved in Shaping Potential Move to DLT Markets
South African Central Bank Governor: Regulators and Policymakers Must Be Involved in Shaping Potential Move to DLT Markets The head of the South African central bank has insisted t
While Miners Deal With Low BTC Prices, Bitcoin’s Mining Difficulty Target Expected to Increase 3% Higher
While Miners Deal With Low BTC Prices, Bitcoin"s Mining Difficulty Target Expected to Increase 3% Higher Bitcoin’s mining difficulty target is expected to increase on Dec. 1
Kenyan Fintech Kwara Raises $3 Million in Seed Extension
Kenyan Fintech Kwara Raises $3 Million in Seed Extension A Kenyan fintech that digitizes credit unions, Kwara, is reported to have raised $3 million via a seed extension round that
AVAX Price Inches Closer To $50 – Will Bulls Deliver A Breakout?
Este artículo también está disponible en español. Avalanche (AVAX) is making waves in the crypto market as its price approaches the significant $50 resistance level. The
Chaintip Creator Unveils New Tipping Tool Sharetip
Chaintip Creator Unveils New Tipping Tool Sharetip Tipping internet users with cryptocurrency, particularly Bitcoin Cash, seems like a great way to spread adopti
New High For TRON, But Bearish Signals Cast Shadows On The Rally
Este artículo también está disponible en español. The price of TRON (TRX) has been on an impressive run of late and established a double-top technical formation. Technica
Guggenheim’s Scott Minerd Discusses ‘Greatest Investing Opportunity’ — Warns Stocks Vulnerable to Further Declines
Guggenheim"s Scott Minerd Discusses "Greatest Investing Opportunity" — Warns Stocks Vulnerable to Further Declines The chief investment officer of asset management firm Guggenhei
Dogecoin Price To $1 Soon? Textbook Weekly Golden Cross Shows What’s Coming Next
Este artículo también está disponible en español. The Dogecoin price could be gearing up to reach the coveted $1 All-Time High (ATH)as the meme coin has just displayed a
UAE Property Developer DAMAC to Launch Metaverse Project in March Says Managing Director
UAE Property Developer DAMAC to Launch Metaverse Project in March Says Managing Director One of the United Arab Emirates (UAE)’s leading real estate property developers, DAM