Recent analysis indicates that Ethereum could soon experience a correction of as much as 28%.
Ethereum’s market has been quite interesting these past months. After the crypto market mounted a recovery after months of winter-ish bearish sentiment, ETH shot up by more than 100%, reaching the highs of $2,080 from the lows of $896.
However, it appears that the coin is now running out of steam. The coin has lost by over 8% over the last 24 hours. It’s currently trading at around $1,700.
Is ETH On The Way To $1,300?
According to a tweet shared by one of the top traders, Ali Martinez, data from TradingView reveal that ETH’s rising edge has broken out, indicating a possible downfall to the $1,300 range. That represents a whole 28% price correction.
#Ethereum appears to have broken out of a rising wedge. The technical formation forecasts that $ETH could enter a 28% correction toward $1,300. #ETH pic.twitter.com/rcwbW3xyuo
— Ali Martinez (@ali_charts) August 19, 2022
In another tweet, the fan shared more data from IntoTheBlock. The data indicates that close to 680k addresses purchased Ethereum at around $1,700-$1,750. As such, the coin must hold above this range, failure to which the buyers may panic sell and lead to a further crash down to the $1,300 range.
“Ethereum must hold above this demand zone to have a chance of recovering. Otherwise, these addresses could try to break even in their positions, triggering a correction to $1,300.
Data shows that 675,500 addresses had previously bought 8.91 million $ETH between $1,700 & $1,750.#Ethereum must hold above this demand zone to have a chance of recovering. Otherwise, these addresses could try to break even in their positions, triggering a correction to $1,300. pic.twitter.com/aGIHbb4LcM
— Ali Martinez (@ali_charts) August 19, 2022
Notably, this is happening ahead of Ethereum’s Merge slated for September 15, 2022. The crypto market is volatile, and therefore it’s still unclear what direction the trend might take in the coming days and weeks.
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