After Ethereum (ETH) surged past the psychologically significant $2,000 price level yesterday, its next major price hurdle stands at $2,400. Seasoned crypto analyst Ali Martinez emphasized that ETH must clear this level to regain bullish momentum.
Ethereum Needs To Clear $2,400 To Turn Bullish
Ethereum has climbed nearly 4.5% over the past week, rising from approximately $1,800 on March 13 to $1,992 at the time of writing. However, Martinez points out that despite the recent upward movement, ETH must conquer the $2,400 level to confirm a bullish shift.
While $2,400 remains about 20% away from current price levels, multiple crypto analysts believe ETH could be on the verge of a bullish trend reversal. Crypto analyst Merlijn The Trader highlighted that ETH has broken out of a symmetrical triangle pattern on the 4-hour chart.
The analyst added that ETH’s “most hated rally is about to ignite.” Merlijn’s assessment aligns with fellow analyst Ted, who noted that a short squeeze could rapidly propel ETH to $3,000.
Similarly, in an X post, crypto analyst Crypto Caesar suggested that ETH may be near this market cycle’s bottom and could soon experience a strong upward trend reversal. The analyst shared a chart showing ETH bouncing off a long-standing trendline multiple times since mid-2022.
Further supporting the bullish case, analyst Amr Taha explained in a CryptoQuant Quicktake post that over 150,000 ETH have exited derivatives exchanges in the past two days. Taha noted that such large outflows often signal accumulation by institutional investors – a traditionally bullish indicator.
ETH Threatens Slumping To $1,060
Despite the optimistic signals, some analysts warn that ETH may face more downside before any significant upside move. In an X post, crypto trader Mags suggested ETH could crash to a range low of $1,060 if no meaningful support level holds.
Additionally, other analysts caution that ETH could fall as low as $800 if it breaks down from an ascending triangle pattern. Data from crypto exchange-traded funds (ETF) tracker SoSoValue also indicates waning institutional confidence in ETH.
Notably, US-based spot ETH ETFs have seen continuous net outflows since March 5. As of now, total net assets held in spot ETH ETFs stand slightly above $7 billion, representing approximately 2.8% of ETH’s total supply.
That said, Ethereum’s MVRV Ratio dropping to 0.9 could signal a bullish setup for the digital asset, though such effects typically take time to play out. At press time, ETH trades at $1,992, down 1.7% in the past 24 hours.
Featured Image from Unsplash.com, Charts from X, CryptoQuant and TradingView.com
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