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Ethereum (ETH) is currently facing significant bearish pressure, challenging critical support levels that may influence its next major price movements.
Specifically, trading expert Alan Santana projected on August 5 that Ethereum has swiftly reached the “baseline” support level earlier than anticipated.
He noted that this key support level coincides with the trading range seen in January this year, offering the potential for a bounce but also signaling possible further declines.
Furthermore, Ethereum has recently experienced a sharp decline, bringing it close to critical Fibonacci retracement levels.
The highest bearish volume since June 2022 suggests the continuation of the bearish trend that began in March. This volume surge implies that Ethereum may not have reached its lowest point yet.
Key ETH levels to watch
As of August 5, Ethereum was testing the 50% Fibonacci retracement level at $2,807.04, a critical point for determining the next price movement. This level serves as a significant indicator for market analysts and traders.
If Ethereum fails to hold the 50% Fibonacci retracement level, the next support level is at the 61.8% retracement mark, situated at $2,503.93. Should this level also fail, a more substantial support can be found at the 78.6% retracement level, often referred to as the “baseline,” which is $2,072.39.
This baseline is considered a strong support zone, where a potential price bounce is highly likely. Analysts suggest that if Ethereum fails to maintain this baseline, further declines could see ETH drop to $1,800 or even $1,500.
Timing the next ‘buying’ opportunity for Ethereum
Timing the next big buying opportunity for Ethereum requires careful monitoring of key support levels and market conditions. The next big buying opportunity for Ethereum is likely to emerge around the $1,500 support level.
This level aligns with the projected accumulation range where long-term investors may find significant value.
The accumulation phase is expected to reveal a more precise price range for optimal buying as the market stabilizes and prepares for the next bullish cycle.
It is anticipated that Ethereum could start forming a solid accumulation range within the next 6-8 weeks, making this period crucial for monitoring and identifying the perfect entry point.
Ethereum price analysis
Ethereum is currently trading at $2,518 with a one-day gain of 4%.
On August 5, Ethererum’s price fell as much as 22%. The sell-off was triggered by ETH transfers by Jump Trading, rising geopolitical tensions, and concerns about the health of the global economy.
Investors should exercise vigilance and patience, awaiting clear market signals before making significant buy decisions. By closely monitoring key levels and market conditions, they can identify optimal entry points during market corrections.
This strategic approach is essential for maximizing long-term gains and capitalizing on significant buying opportunities as Ethereum approaches these critical levels.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.