Ethereum's Key Support Levels in Focus After Recent 4% Drop
Ethereum's price has dipped by 4%, leading analysts to identify critical support levels and potential breakout trends. Traders are keenly observing these developments.
Ethereum (ETH) is currently trading at approximately $4,500, reflecting a 4% drop in the last 24 hours.
Despite this downturn, analysts are observing as the price edges closer to a region that historically attracted buyers. Notably, over the past week, ETH has gained 5% despite the recent decline.
Potential for ETH/BTC Pullback
Michaël van de Poppe shared a weekly ETH/BTC chart highlighting a significant rally earlier in the year, where the pair increased by over 140% from its lows, nearing 0.038 before settling around 0.0365, entering a support zone.
Van de Poppe highlighted a target range of 0.0325 to 0.03 BTC as a potential entry point, noting past resistance levels now aligning with the 10-week moving average. Additionally, support levels are identified at 0.026, 0.0232, and 0.0194. Importantly, this pullback occurred with declining volume, indicating diminished selling pressure.
Furthermore, Merlijn The Trader posted a distinct ETH/BTC chart demonstrating a breakout above a trendline that had been established for eight years. This breakout followed ETH’s bounce off long-term support near 0.020, signaling a potentially significant momentum shift.
“Ethereum doesn’t crawl out of patterns like this. It erupts,” noted Merlijn, hinting at a possible surge towards 0.10–0.12 on the chart.
Daily Chart Patterns Repeated
Trader Tardigrade posted a daily chart pattern that reflects previous successful setups where ETH traded sideways before breaking slightly below support and subsequently increasing. The most recent pattern hints at potential rises towards $5,800–$6,200. “Ethereum pump is ongoing,” suggests ongoing positive momentum.
Testing the Danger Zone
Ali Martinez has consistently referred to the $4,000–$4,800 range as Ethereum’s “danger zone” since 2021. His analytics indicate numerous failures at this price level, frequently resulting in rapid pullbacks ranging between 31% and 80%. As ETH approaches this critical area once more, Ali cautioned, “Every touch led to a correction.”
