Ethereum (ETH) Retests Key Support Zone, Enters Crucial Zone Amid Market Volatility

Volatility continues to reign over the general crypto market, causing major digital assets like Ethereum to retest key support levels that previously prompted an upward move.

Recent price movements have brought Ethereum (ETH) to a critical juncture that could determine its next directional move. According to technical analysis platform Rose Premium Signals, the altcoin’s price performance suggests it might be approaching an accumulation zone.

This observation comes as ETH experiences waning momentum, fueled by a bearish performance in the broader crypto market. Notably, long-term investors might be eyeing this downturn to capitalize on lower prices before a potential upswing.

As the market undergoes consolidation following recent volatility, this phase could set the stage for ETH’s next major price upswing, potentially toward a new all-time high. In the meantime, watching key support and resistance levels will be crucial in determining the strength of Ethereum’s market structure to undergo another significant upward move.

Rose Premium Signals highlighted that ETH has now broken below a critical support zone on the 4-day time frame. This breach coincides with ETH’s inability to sustain key price levels amid unfavorable market conditions.

Considering the ongoing Bitcoin (BTC) correction, ETH might continue retracing toward the $2,807 level, presenting a potential accumulation zone before a rebound. However, if the altcoin fails to produce a recovery, this breakdown could pave the way for increased volatility toward lower support points.

Rose Premium Signals’ chart also showcases that ETH has formed a bullish pattern that points to an upward trajectory. However, this chart setup suggests a potential deeper correction prior to the resumption of bullish continuation.

Should Ethereum resume its upswing, Rose Premium Signals has predicted a huge rally to the $7,000 mark. With the rising adoption of the Ethereum blockchain, this positive trend might support the altcoin’s next upswing as investors watch for potential resistance levels.

ETH’s downside movement is crucial for a major surge: technical expert

In a related development, technical expert and investor Ali Martinez has also predicted a significant upswing to the $7,000 level. Interestingly, Martinez also anticipates a notable decline to a key support level before ETH resumes its upward direction.

Martinez highlighted a drop to $2,900, which is bullish for ETH as it presents a good buy-the-dip opportunity to the $7,000 level. His prediction is backed by a key chart formation, particularly the Head and Shoulders pattern, which is often a precursor for a rally.

At the moment, Ethereum is trading at $3,297, indicating a slight increase of about 0.43% in the last 24 hours. ETH’s trading volume has dropped nearly 7% in the past day, suggesting a waning investors’ sentiment.