ETH Dips Over 2% in 24 Hours, Analyst Highlights Potential Support Levels

ETH Dips Over 2% in 24 Hours, Analyst Highlights Potential Support Levels

Ethereum (ETH) has experienced a negative price movement, declining by over 2% in the past 24 hours, according to data from CoinMarketCap. This drop comes after a significant price boost, in which the altcoin gained over 19% following the news of the approval of a Bitcoin spot ETF in the US. Notably, popular crypto analyst Ali Martinez has provided further insights into the developing downtrend of ETH, identifying potential support zones for the altcoin.

In a recent post on January 11, Ali Martinez utilized the TD Sequential indicator to analyze the Ethereum 4-hour chart. The indicator displayed a sell signal, suggesting that the altcoin’s price could fall to a support level of $2,530. The TD Sequential indicator is a widely used technical analysis tool that helps identify trend exhaustion and predict potential trend reversals. Martinez’s analysis indicated that ETH was due for a price correction following its surge above $2,700, triggered by the US Securities and Exchange Commission’s approval of Bitcoin spot ETFs.

In a subsequent post on January 12, the renowned crypto analyst reinforced his previous prediction. Martinez stated that if the bullish momentum failed to maintain the value of ETH above $2,530, the altcoin could potentially trade as low as $2,450. Despite the current negative price movement, it is important to note that this appears to be a correction rather than a major shift in market sentiment. Investors remain optimistic about ETH, especially with the anticipation of an Ether spot ETF in the US, following the SEC’s clearance of 11 Bitcoin spot ETF applications.

As of now, Ethereum is trading at $2,548, experiencing a slight decline of 2.67% within the past day. However, the altcoin has demonstrated an overall bullish performance over the last week, with a notable gain of 14.48%. Additionally, there has been a significant increase in ETH’s daily volume by 22.25%, reaching a value of $26.8 billion. These positive indicators suggest that despite the recent price dip, ETH continues to attract investor attention and maintain its position as the second-largest cryptocurrency.

While Ethereum has faced a minor setback in its price movement, crypto analyst Ali Martinez’s analysis signals potential support levels for the altcoin. The TD Sequential indicator points to a correction in price following a significant surge triggered by the approval of Bitcoin spot ETFs by the SEC. Investors remain optimistic about ETH, given its ranking and the growing interest in Ether spot ETFs. Although the current price reflects a slight decline, the overall performance of Ethereum remains bullish, supported by increased trading volume. As with any investment, it is essential to conduct thorough research and carefully analyze the market before making any investment decisions.

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