In recent weeks, Ethereum has shown price decreases followed by upward movement. Analyst Ali Martinez predicts Ethereum will first drop to $2,300 and then rebound to $4,000.
Current Ethereum Trends
Ethereum's market cap is currently $332.3 billion with its price at $2,756 at press time, showing a one-day increase of 1.51%. Analyst Ali Martinez posits that in the best-case scenario, Ethereum is bound to test the $2,300 support before moving towards $4,000. However, in the worst-case scenario, this could indicate a double-top pattern which is a bearish signal.
Ethereum Price Outlook
The main support area for Ethereum stretches from $2,610 to $2,300. Investors need to enter the market at the $2,300 price to halt further declines. ETH encounters its first barrier at $3,000 and a subsequent challenge near $4,000. An extension of upward market momentum requires clearing these resistance levels. The cryptocurrency market recorded a 30% drop in Ethereum's daily trading volume in the last day, indicating consolidations before potential growth.
Expectations for ETH Price
A major increase in Ethereum's price to surpass $3,000 could establish conditions for reaching $4,000 if supported by prices above $2,300. Market volume strength during an uptrend will validate this bull run. A lack of support at $2,300 would increase the risk of Ethereum falling towards $2,000.
Ethereum faces critical support and resistance levels. The persistence of prices above $2,300 and successfully breaching $3,000 will dictate further growth momentum towards $4,000.
