Ethereum Could Crash To $1,700 If This Support Fails, Analyst Says
An analyst explained how Ethereum (ETH) crashed its price to $1,700 if the support level of the Technical Analysis (TA) model fails.
Ethereum may be in danger of landing under the support of upward channels
New postal On X, analyst Ali Martinez discusses where Ethereum can move forward based on the pattern formed in its 12-hour price list. The pattern in question is Ascending parallel channel As the name implies, TA involves two parallel trend lines that slant upwards.
Related Readings
When an asset is inside this channel, it is integrated with net upside. The top track pattern is uplined with higher prices, while the higher lows are drawn in the lower layer.
Like other TA modes, the former line is considered a source of resistance in the near future, and the latter is the support point. Breakthroughs of both boundaries can suggest a continued trend in that direction.
The rising parallel channel is not the only parallel channel in TA. When parallel mergers occur on the adverse side, the formation is called Descending parallel channel. However, none of these titles are the most common types, because the title is held by a basic parallel channel, with the trend line of the title parallel to the time axis (i.e., their slope is zero).
Now, here is a chart shared by analysts showing the upward channels for Ethereum’s 12-hour price has been trading internally over the past few years:
From the chart, it is obvious that the price of Ethereum for half a day is very short Retest The most recent lower level. At the time, the coin found support, but its value was still very close to the line, which meant another type of retest might happen soon. The current price for this level is $2,500.
This line has been ongoing for cryptocurrencies over the past few years, so it is likely to do so again in the near future. “If Ethereum $eth Holding over $2,500, it could rebound to $4,000 or even $6,000,” Martinez noted.
The former target is from the current mark to half of the channel, while the latter corresponds to the upper layer. The last time Eth appeared last was near the front line.
Related Readings
“However, if $2,500 fails with support, the next target will shift to $1,700!” warned analysts. Starting with the current price of the coin, the collapse of this target means a drop of more than 39%.
Now, it remains to be seen whether Ethereum will retest the lower levels of the upward channel again in the coming days.
ETH price
At the time of writing, Ethereum has floated about $2,800, down more than 6% over the past seven days.
Featured images from dall-e, charts from tradingview.com
