Ethereum has mostly moved sideways between $2,500 and $2,350 in the past week, leaving its future trajectory uncertain. This movement has made many bulls concerned. An analysis using the TD Setup by Ali Martinez emphasizes that $2,250 is a crucial price point for Ethereum's price path.
The TD setup is favored among analysts for identifying reversal points. Historically, Ethereum prices react strongly to this setup. Martinez notes that the ETH price often rallies after breaking above TD resistance, while breaking below its support usually leads to corrections averaging 53%.
The first major breakout above TD resistance led to an 8,885% surge. Conversely, breaking below for the first time resulted in a 56.67% drop. The latest breakout in March saw ETH surging 113%, reaching over $4,000, the first in two years.
Presently, Ethereum trades approximately at $2,410, about 7% above the critical $2,250 level detected by the TD setup. However, its close proximity suggests it's a critical price to watch with potential bearish reversal if it falls below.
Market sentiment about Ethereum is split, with current sellers holding advantage. However, breaking above $2,500 could ignite a bullish momentum.
