Ethereum Price Rallies Above $2,400: Is $2,650 the Next Target?
Ethereum Price Holds Strong Above $2,400: Is $2,650 The Next Stop?
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The cryptocurrency market has been experiencing a period of bearish pressure, with the Ethereum price declining by 6% over the past week. On Saturday, October 26th, Ethereum faced a sudden price dip before finding support just above the $2,400 mark. A prominent crypto analyst on X has shared an optimistic outlook for Ethereum, suggesting a potential rebound. The key question is: How far can Ethereum climb before encountering significant resistance?
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TD Sequential Signals Potential Buy Opportunity for Ethereum
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Renowned crypto analyst Ali Martinez, taking to the X platform, has presented an intriguing short-term forecast for the Ethereum price. According to Martinez, the Tom Demark (TD) Sequential indicator has issued a buy signal for Ethereum on its 12-hour chart. This indicator, designed to pinpoint trend exhaustion and price reversals, comprises two phases: the TD Setup (momentum phase) and the TD Countdown (trend exhaustion phase).
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The TD Setup phase, following a price reversal, involves a 9-candle count. The TD Countdown phase, which only becomes valid after the Setup phase is established, consists of 13 candles, typically of the same polarity.
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As observed in the chart, Ethereum appears to have completed the TD Setup phase, with the “9” figure plotted on the last candlestick. This suggests that the price may have reached a bottom, indicating a potential rebound. Martinez emphasizes that the case for an Ethereum rebound strengthens if the support level at $2,412 holds. He predicts that the altcoin could rise as high as $2,665 before encountering the next major resistance level.
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On-Chain Data: Selling Pressure from US Institutions
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Recent on-chain data reveals that the ETH Coinbase premium remains in negative territory, dropping to -2 in recent weeks. This trend suggests that whales and institutional investors in the United States are selling their Ethereum holdings. Although Ethereum shows signs of a quick rebound, selling pressure from large US investors could potentially hinder price growth in the short term. However, this bearish period could offer an opportunity for long-term investors to “buy the dip.”
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As of this writing, the Ether token is trading at $2,478, representing a negligible 0.1% dip in the past 24 hours. The $2,412 support level has held strong, providing support for the recent price rally.
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While short-term market fluctuations may persist, the potential for Ethereum to reach $2,650 remains a compelling prospect. With the TD Sequential buy signal and the potential for a rebound, Ethereum’s future trajectory is worth watching closely. However, it’s essential to remember that the cryptocurrency market is inherently volatile, and any price prediction should be considered cautiously.