Seasoned traders and analysts are sounding the alarm for Ethereum, pointing to technical indicators and external pressures that could lead to major price movements in the coming days.
Crypto analyst Ali has highlighted a crucial pattern in Ethereum’s price action related to the TD (Tom DeMark) setup. According to Ali, Ethereum’s behavior around the TD setup trendlines has historically been a reliable indicator of future price movements.
“Each time Ethereum breaks above the TD setup resistance trendline, a strong bull run follows,” Ali notes. “But when ETH breaks below the TD setup support trendline, we’ve seen an average 53% correction.”
Each time #Ethereum breaks above the TD setup resistance trendline 🔴, a strong bull run follows. But when $ETH breaks below the TD setup support trendline 🟢, we’ve seen an average 53% correction.
The key support now is $2,250—losing it could trigger a significant price drop. pic.twitter.com/PljkRda78S
— Ali (@ali_charts) October 10, 2024
$2,250 remains a critical Ethereum support
This observation puts the spotlight on the current key support level of $2,250. Ali warns that a break below this threshold could trigger a major price drop, potentially mirroring past corrections.
Adding to the bearish sentiment, trader The Moon Carl points out a breakdown from a falling wedge pattern on the 1-hour chart. He suggests that if Bitcoin continues its downward trajectory, Ethereum could quickly test the $2,200 level.
#Ethereum broke down of this 1h falling wedge! If #BTC continues to fall, we might see $2,200🎯 very soon!👀 pic.twitter.com/fdtZ8xnEpq
— The Moon (@TheMoonCarl) October 10, 2024
However, an even more ominous threat looms on the horizon. Analyst Crypto Rand has brought attention to a developing situation involving seized Ethereum from the PlusToken Ponzi scheme.
According to Rand, the Chinese government has already sent 7,000 ETH to cryptocurrency exchanges, with a staggering 542,000 ETH (worth approximately $1.3 billion) potentially following suit.
This massive overhang of Ethereum, if sold on the open market, could exert significant downward pressure on the price. The crypto community is now watching closely to see how the Chinese authorities will handle this substantial cache of seized assets.
Source: https://www.cryptonewsz.com/ethereum-eth-could-face-53-correction/