Renowned crypto analyst #AliMartinez recently highlighted key trends in Ethereum's price history, using the TD Sequential setup to predict potential outcomes for the second-largest crypto asset.
According to Martinez, Ethereum has followed a clear pattern over the past two market cycles. Each time its price breaks above the TD setup resistance line, marked in red on the chart below, $ETH
has entered a strong #bullrun2024📈📈 .
Past breakouts have propelled Ethereum up 8885% in the 2017/2018 cycle and 1462% in the 2020/2021 season, pushing it to new all-time highs in each case. A similar sustained bullish trend unfolded in the first quarter of 2024, when Ethereum's price rose from around $1400 to over $4000, although it failed to set a new cycle peak during that time.
The past trend when Ethereum fell by 53%
However, the flip side of this analysis is just as important. Whenever #ETH🔥🔥🔥🔥 breaks below the TD-set support line, it is followed by a sharp correction, averaging a 53% drop.
Looking at the historical chart, Ethereum has experienced three major corrections with drops of 56.67%, 54.43%, and 51.41% each time after losing support at key levels.
Ethereum is balancing on critical support
This pattern is now repeating itself, with Ethereum currently hovering around the $2250 support level. Martinez noted that if ETH doesn't hold above it, the market could see another sharp drop, mirroring similar corrections in the past.
A factor in the strength of this support level is that it was around this level that a larger pool of investors entered the Ethereum market. For example, IntoTheBlock data shows that 2.4 million addresses purchased ETH at prices ranging from $2,268 to $2,340, collectively owning 52.59 million ETH #tokens .
Martinez emphasized that if this demand zone doesn't work, it could trigger a sell-off as investors seek to limit their losses. The projected price drop could become severe as fewer addresses have bought ETH at other price levels, leading to weak support against strong selling pressure.
At the time of publication, Ethereum's market position has improved slightly, trading at $2,425 and up 1.655% over the past day.
