Crypto analyst Poseidon (@CryptoPoseidonn) has launched an in depth worth prediction for Ethereum (ETH). His analysis, delivered to his 123,000 followers on social media platform X, revolves across the pivotal $2,160-$1,900 worth vary which has traditionally served as a big high-timeframe (HTF) help for the reason that summer time of 2021.
ETH Price Evaluation: $8,000 Is Doable If …
In keeping with Poseidon, Ethereum lately retested what he describes because the “most crucial support level on the chart” after a big breakout earlier within the 12 months. This worth zone has persistently acted as a key battleground for bulls and bears, making it a central focus of technical evaluation. “Early in 2024, we broke out of this level, leading to a substantial price increase because this was the only resistance holding us back. Now, after 200 days, we are back at the same level, and for me, buying ETH here is an opportunity,” Poseidon detailed in his evaluation.
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The resilience of the $1,900 help degree is essential to Ethereum’s bullish outlook. A breach beneath this degree with out fast restoration would doubtless point out a cycle high and will precipitate a drop to as little as $1,000, marking a big reversal within the prevailing market pattern. Nonetheless, Poseidon assesses this danger as low, expressing confidence within the help’s reliability: “I find this scenario highly unlikely. I believe the price will bottom out in this range, marking a significant HTF low.”
Trying ahead, Poseidon units conditional targets that depend on Ethereum reclaiming and stabilizing above sure worth thresholds. Initially, ETH must breach the $3,000 mark, adopted by $3,500, to set the stage for a possible rally to new highs. “If we manage to surpass $5,000, I think $7,000-$8,000 is realistic. Although I believe we could go much higher, anything above $8,000 would be risky for me to stay in longs. I’d be extremely cautious and would sell quickly if the daily trend breaks down,” he acknowledged.
To justify these targets, Poseidon employs Fibonacci retracement ranges, a standard software amongst merchants for predicting potential reversals, help, and resistance ranges based mostly on prior market actions. These projections, nevertheless, are contingent available on the market sustaining its construction with out important pattern breaks.
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The transition to a bullish market section for Ethereum hinges on a number of key technical indicators. First, Ethereum must reclaim and maintain the 200-day EMA to sign strengthening momentum. Second, the crypto asset should preserve help above the vary low which is essential for continued bullish sentiment. Third, overcoming the each day provide zone from $3,100 to $3,200 will doubtless take a look at Ethereum’s resilience, which if profitable, might solidify the asset’s upward trajectory.
Poseidon elaborates on the challenges of this bullish flip, noting the present bearish sentiment and the issue of breaking above these resistance ranges. “While we’re sitting at a strong weekly and monthly support level, we’re still in a downtrend. To confirm this level as the bottom, we need to shift the daily trend to bullish again.”
Including to his technical evaluation, Poseidon highlights the H8 timeframe and its EMA200 because the “GOAT” (Best of All Time) for pattern dedication. “I’ve studied the H8 EMA200 on ETH since 2018, compared it with other EMAs and timeframes, and I can confidently say that the H8 EMA200 is the GOAT,” he asserts. This explicit timeframe and transferring common present a singular perception into shorter-term worth actions and are key to Poseidon’s buying and selling technique.
At press time, ETH traded at $2,753.90.
Featured picture created with DALL.E, chart from TradingView.com
