Ethereum Price To Hit New All-Time High If This Happens: Crypto Analyst
August 14 2024 - 3:00PM
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Crypto analyst Poseidon (@CryptoPoseidonn) has released a detailed
price prediction for Ethereum (ETH). His analysis, delivered to his
123,000 followers on social media platform X, revolves around the
pivotal $2,160-$1,900 price range which has historically served as
a significant high-timeframe (HTF) support since the summer of
2021. ETH Price Analysis: $8,000 Is Possible If … According to
Poseidon, Ethereum recently retested what he describes as the “most
crucial support level on the chart” after a significant breakout
earlier in the year. This price zone has consistently acted as a
key battleground for bulls and bears, making it a central focus of
technical analysis. “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 analysis. Related Reading: Bigger Risks
More Returns: Ethereum’s Volatility Surpasses Bitcoin’s by 50%,
Data Shows The resilience of the $1,900 support level is critical
to Ethereum’s bullish outlook. A breach below this level without
quick recovery would likely indicate a cycle top and could
precipitate a drop to as low as $1,000, marking a significant
reversal in the prevailing market trend. However, Poseidon assesses
this risk as low, expressing confidence in the support’s
reliability: “I find this scenario highly unlikely. I believe the
price will bottom out in this range, marking a significant HTF
low.” Looking forward, Poseidon sets conditional targets that rely
on Ethereum reclaiming and stabilizing above certain price
thresholds. Initially, ETH needs to breach the $3,000 mark,
followed by $3,500, to set the stage for a potential 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 stated. To justify these targets, Poseidon employs
Fibonacci retracement levels, a common tool among traders for
predicting potential reversals, support, and resistance levels
based on prior market movements. These projections, however, are
contingent on the market maintaining its structure without
significant trend breaks. Related Reading: Ethereum Price Ready For
75% Breakout To $4,723, Here’s Why The transition to a bullish
market phase for Ethereum hinges on several key technical
indicators. First, Ethereum needs to reclaim and hold the 200-day
EMA to signal strengthening momentum. Second, the crypto asset must
maintain support above the range low which is crucial for continued
bullish sentiment. Third, overcoming the daily supply zone from
$3,100 to $3,200 will likely test Ethereum’s resilience, which if
successful, could solidify the asset’s upward trajectory. Poseidon
elaborates on the challenges of this bullish flip, noting the
current bearish sentiment and the difficulty of breaking above
these resistance levels. “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.” Adding to his technical analysis, Poseidon
highlights the H8 timeframe and its EMA200 as the “GOAT” (Greatest
of All Time) for trend determination. “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 particular timeframe and moving average provide a unique
insight into shorter-term price movements and are key to Poseidon’s
trading strategy. At press time, ETH traded at $2,753.90. Featured
image created with DALL.E, chart from TradingView.com
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