Ethereum’s price recently closed above $1,800 but remains at risk of falling to $1,500 if it breaches the critical support level of $1,772 as highlighted by analyst Ali Martinez. With substantial buying activity near $1,799, this area could serve as strong support. However, a lack of investor activity below this level raises concerns about a further drop. Currently, ETH is around $1,830, with potential for gains to $2,100 if the support is maintained.
In recent weeks, Ethereum has been showing some volatility, with its price closing above $1,800 in April, despite failing to finish the month in profit. This marks the fourth consecutive month of negative performance for ETH. Analysts are now closely watching a critical support level that could indicate what happens next for the altcoin in the coming weeks.
Prominent crypto analyst Ali Martinez highlighted, via a May 3 post on X, that Ethereum’s price is at a crucial crossroads. Based on the latest on-chain data, there’s a risk of ETH plummeting towards $1,500 if it does not hold the current support at around $1,772. The analysis takes into account the cost bases of numerous Ethereum investors, highlighting how these levels can dictate whether a price point will act as support or resistance.
The analysis bridges on-chain trends with trading analysis. A chart which was shared shows how significant buying patterns can create support levels. Larger dots on the chart indicate a higher volume of ETH tokens bought in certain price ranges. According to data from IntoTheBlock, approximately 6.36 million ETH tokens were purchased at prices between $1,772 and $1,824, averaging around $1,799. This creates a strong support zone just below the current price.
When Ethereum drops to around $1,772, there seems to be a strong chance of a bounce back. Investors who bought at or near this price are likely to step in and buy more if prices dip, essentially propping up its value at that support level. However, it’s worth noting that the chart suggests there’s much less buying activity below $1,772, leading to the notion that a significant fall to about $1,500 could happen if this level is breached.
In a twist, if the support at $1,772 holds, the Ethereum price could potentially rise to as high as $2,100, as not much resistance appears to lie in that upward trajectory. As it stands, the ETH token is currently valued at around $1,830, posting an almost one percent increase in the last 24 hours. Investors would do well to keep a close eye on this level.
Opeyemi, the author and cryptocurrency writer, has been active in this space for over two years now. Despite not originally choosing this path, he’s become truly fascinated by the complexities of blockchain technology. He enjoys delving into price patterns and interpreting chart formations, insisting that understanding on-chain movements is something that fuels his passion.
In his personal life, Opeyemi is drawn to various genres of music, with a penchant for Afrobeats—one of his staples on Spotify. He’s also a fervent reader, taking in a variety of books from sci-fi to fantasy. He often reflects on the mastery of authors like George R. R. Martin and J.K. Rowling, having revisited the Harry Potter series multiple times.
Despite being content at home, he also connects with friends in social settings. His ambivert nature allows him to switch between being outgoing and enjoying solitude. Opeyemi is committed to self-improvement, regularly seeking out learning opportunities to stay ahead in the fast-moving crypto market. He values efficiency and strives to perform well in every aspect of his writing, attempting to enlighten others on cryptocurrency’s vast potential, ending each day with a sense of accomplishment and satisfaction.
The disclaimer remains essential: the insights shared here are educational, and readers should always conduct their own research before making any investment decisions in this volatile market, as risks are inherently involved.
