Has Ethereum price bottomed?
Last week, Ethereum ($ETH) price briefly fell below the $3,320 support level, with wild price swings making many investors nervous.
However, this downward pattern did not last long. After testing the bottom of $3,240, the price of Ethereum rebounded by 2.9% in the past 24 hours, recording a maximum of $3,512, and the daily trading volume soared by 66%. , reaching US$9.7 billion.
Image source: CoinGecko
Currently, the market is paying close attention to whether Ethereum "has hit bottom," and on this issue, well-known analyst Ali Martinez expressed his own views.
Behind recent price increases
In an X tweet on July 1, Ali Martinez provided a candlestick chart of Ethereum’s 3-day chart and used the TD Sequence Analysis tool to identify trend and price reversal points.
He pointed out on the Ethereum price is likely to continue rising in the coming days.
Looking at the daily chart, Ethereum has formed a classic falling wedge pattern, which usually signals a bullish reversal in price. Ethereum price is above the 50-day and 200-day simple moving averages (SMA), which also indicates bullishness. A breakout of the wedge pattern is intended to initiate the next rally.
Image source: TradingView
Additionally, the Relative Strength Index (RSI) is hovering around 49 and the Moving Average Convergence Divergence (MACD) indicator is also moving towards neutral, suggesting that the market is turning from bearish to bullish, a trend that could bring more power to the bulls.
Forecast of future price trends
Ethereum price is currently at a critical juncture, with bulls struggling to maintain the upward trend. The first major resistance level is located near $3,450. An upward break above $3,540 has the opportunity to further push the upward trend, which may hit the resistance level of $3,720 in the short term and in the long term. It is expected to challenge the all-time high of $4,880.
However, analysts also warned that if Ethereum fails to break through the resistance level of $3,450 for a long time, it may fall to the bottom again to find momentum. The initial support is near $3,325, and the first major support level is at the 50% Fib retracement level. $3,230.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
