Ethereum (ETH) has seen modest gains in the past week, rising by 2.80%, but it remains stuck in a long-term downtrend that began in December 2024. This sustained bearish market has led to caution among investors, and renowned market analyst Ali Martinez has provided his insights on Ethereum’s current price action, suggesting that the altcoin may not yet be ready for a full recovery. Martinez also lays out key price levels that will indicate whether Ethereum is near the end of its correction or if further downside is likely.
Ethereum’s price has dropped by over 57% from its local peak of $4,100 in December. According to Martinez, this significant decline can be attributed to the large-scale distribution by Ethereum’s whales—wallets holding substantial amounts of ETH. Martinez highlights that wallets with at least 10,000 ETH have reduced their holdings by 80%, while those holding 100,000 ETH or more have offloaded 130,000 ETH in the past few months.
In addition to the whale-driven sell-off, Ethereum Spot ETFs have also seen massive withdrawals. Over the past month, there has been a net outflow of $760 million, further signaling a lack of confidence from institutional investors. This has been compounded by fears in the market, with some investors transferring large amounts of ETH, anticipating continued price declines.
Martinez’s analysis also points to several technical indicators that suggest Ethereum may face further downside in the near term. One of the key signals is the breakdown of an ascending triangle pattern on Ethereum’s 3-day charts. This indicates that ETH could be heading toward a price target of around $1,000. Moreover, Ethereum’s pricing bands suggest a downside target of $1,440, representing a 27.4% decline from its current price.
Ethereum is currently holding above a crucial support level at $1,887. However, if the price falls below this level, Martinez believes that Ethereum could see further declines, with targets at $1,440, $1,250, and even $1,000. These price levels will be important to watch, as a breakdown below these supports could significantly dampen market sentiment and trigger additional sell-offs.
Despite these bearish signals, Martinez also sees potential for Ethereum’s market recovery, particularly if the price can break above key resistance levels. According to his analysis, Ethereum is facing substantial resistance between the price range of $2,250 and $2,610. If Ethereum bulls can push past this resistance, it would invalidate the current bearish outlook and potentially lead to a price recovery.
Martinez also mentions that the overall market sentiment and Ethereum’s ability to maintain support at key levels will play a significant role in determining whether a recovery is in the cards. A breakout above the resistance zone would signal that Ethereum’s correction is over, opening the door for further gains. However, if Ethereum continues to struggle within this range, the bearish pressure could persist.
At the time of writing, Ethereum is trading at $1,985, reflecting a 1.10% gain in the past 24 hours and a 2.10% increase over the past week. However, Ethereum is still down by 27.32% over the last month. Ethereum’s market capitalization stands at $239 billion, representing 8.7% of the total cryptocurrency market, maintaining its position as the second-largest cryptocurrency by market cap.
Ali Martinez’s analysis presents a mixed outlook for Ethereum. While the potential for a recovery exists, the current bearish indicators and the significant resistance levels suggest that Ethereum could face more downside before any substantial upward movement occurs. Investors should monitor Ethereum’s price action closely around key support and resistance levels, as these will determine whether a buying opportunity is emerging or if further declines are on the horizon.
In conclusion, Ethereum remains in a challenging position, and while there is potential for a recovery, investors should be cautious and wait for clearer signs of reversal before making any significant moves.
Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.
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