Ethereum Poised for Significant Dip Heres When to Grab the Next Major Buying Chance
Ethereum (ETH) is currently under considerable bearish pressure, testing important support levels that could impact its upcoming price movements. Trading analyst Alan Santana highlighted on August 5 that Ethereum has reached its “baseline” support level sooner than expected. This pivotal support aligns with the trading range observed in January of this year, presenting a chance for a rebound while also indicating the potential for further declines.
In recent developments, Ethereum has seen a steep drop, bringing it close to essential Fibonacci retracement levels. The highest bearish trading volume recorded since June 2022 suggests that the downward trend, which initiated in March, may persist. This surge in volume indicates that Ethereum might not have hit its lowest point yet.
Ethereum price analysis chart. Source: TradingView/Alan Santana
**Key Levels for ETH to Monitor**
As of August 5, Ethereum was testing the 50% Fibonacci retracement level at $2,807.04, a crucial marker for its next price trajectory. This level is significant for market analysts and traders alike. If Ethereum cannot maintain this 50% retracement level, the next support will be at the 61.8% retracement mark, located at $2,503.93. Should this level also fail to hold, a stronger support can be found at the 78.6% retracement level, often referred to as the “baseline,” which stands at $2,072.39. This baseline is recognized as a robust support area where a bounce-back is likely. Analysts warn that if Ethereum fails to uphold this baseline, it could see declines reaching as low as $1,800 or even $1,500.
**Identifying the Next Buying Opportunity for Ethereum**
Finding the ideal moment to buy Ethereum necessitates careful observation of critical support levels and market dynamics. A favorable buying opportunity is expected to present itself around the $1,500 support level, which aligns with the anticipated accumulation zone where long-term investors may see significant value.
As the market stabilizes and gears up for the next bullish cycle, the accumulation phase is likely to reveal a more defined price range for optimal purchasing. It is expected that Ethereum could establish a solid accumulation range within the next 6-8 weeks, making this timeframe essential for tracking and pinpointing the best entry point.
**Current Price Analysis of Ethereum**
Presently, Ethereum is trading at $2,518, with a one-day increase of 4%.
Ethereum seven-day price chart. Source: Finbold
On August 5, Ethereum’s price plummeted by as much as 22%. This sell-off was spurred by ETH transfers from Jump Trading, escalating geopolitical tensions, and worries regarding the health of the global economy. Investors are advised to remain vigilant and patient, waiting for clear market signals before making significant purchasing decisions. By closely monitoring key levels and market conditions, they can identify optimal entry points during market corrections. This strategic approach is crucial for maximizing long-term gains and seizing significant buying opportunities as Ethereum nears these critical thresholds.
**Disclaimer:** The information provided on this site should not be construed as investment advice. Investing carries risks, and your capital is at stake.