Ethereum's price is currently around $2,420, with a critical support level at $2,250.
Historical patterns show an average 53% price correction when Ethereum breaks below the TD setup support trendline.
If the $2,250 support level doesn't hold, Ethereum could experience a significant sell-off similar to previous cycles.
Historical Ethereum price patterns provide valuable insights into future market movements. A common trend is a significant surge in value after breaking above the TD setup resistance trendline, followed by a substantial price correction when below the TD setup support trendline.
New data reveal that Ethereum is at around $2,420. But as in the TD setup, the critical level of support is now identified to be $2,250. If this level were to break, it could open the way towards a steep sell-off and a price plunge, which could therefore be interpreted as a major bearish configuration of similar magnitude as the previous ones previously observed. Ethereum has always been characterized by corrections following the breakdown of the TD support trendline, which average a 53% fall.
Historical Breakouts and Potential Risks
Ethereum has shown a consistent trend in price movements when either breaching the TD setup resistance or falling below the support.Should either rise above the trendline it usually goes on an upward trend like during the major bullish runs. On the other hand, the low side is equally significant as the TD setup support fails when Ethereum declines. This has on several occasions led to corrections where the trendlines corrections are above 50% showing how much an influence these trendlines bring.
https://twitter.com/ali_charts/status/1844285488607395859
With Ethereum hovering around the $2,420 range, the $2,250 support level becomes crucial. But if Ethereum cannot hold this level of support to reverse the current downtrend, then like in other cycles, it will experience a correction. Therefore, traders and investors may also have to be careful because of the previous sharp drop following breaks at the support level.
The study suggests a correlation between Ethereum price movement and technical analysis, particularly TD setup trendlines. The key supporting level at $2,250 suggests Ethereum may experience another significant pullback or consolidation, with any outcome below this level potentially causing a significant price drop.
The post Ethereum Investors Brace for Impact as Key $2,250 Support Level Comes Under Threat. appeared first on Crypto News Land.
