Key facts:
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Prices that were once supports or resistances tend to become so again.
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The price of ether has shown great weakness so far this year.
Ether (ETH), the native Cryptocurrency of the Ethereum network, continues to show a weak performance so far in 2024, with a growth of 7% since January 1, well below the 36% achieved by Bitcoin (BTC) in the same period.
Despite the enthusiasm generated by the launch of exchange-traded funds (ETF) in the United States, The digital currency had its worst in August performance from June 2022Since the first days of last month, its price has plummeted below the $3,000 mark and has so far been unable to recover.
At the time of writing, ETH is trading at $2,452, almost 50% below its all-time high (ATH) recorded in November 2021.
In this context, it is worth asking: How far can the cryptocurrency price fall? of the network created by Vitalik Buterin.
A technical indicator that may be useful for the occasion is the theory of resistance and support zones.
As explained in Criptopedia, the educational section of CriptoNoticias, it is a level or area Price range that a financial asset reaches at certain times but which, for various reasons, it does not usually exceed or go beyond. It should be noted that this is a technical analysis that works with probabilities and is not an exact price prediction.
In the case of support, It is a kind of floor or base with which the price of the assetin this case ETH, crashes to rebound or stabilize. In downward trends, such as the one experienced by ether in recent months, it is common for old resistance zones to become new support levels.
In the following graph TradingViewit can be observed that if the asset price continues to fall, would have support at the barrier of $2,000, $1,600 and $1,200.
The first support for ETH would be in the $2,000 area. Source: TradingView.
Bullish outlook
For Benjamin Cowen, founder of Into The Cryptoverse, the network’s currency Ethereum this repeating patterns seen in 2016 and is preparing to enter a bullish rally. “If this continues, it would suggest that ETH will be green in September and then red between October and December. Then, in 2025, it turns green for a while,” he detailed.
To support his analysis, he shared a graph in which the behavior of the price he mentions can be observed:
For his part, Luke Nolan, an analyst at digital asset management firm CoinShares, holds that a good performance of bitcoin (BTC) could be the key to ETH trading above $3,500 again.
Along those lines, Matt Hougan, investment director of the firm Bitwise, believe that The US presidential election may be the catalyst that ether needs to enter a bullish cycle.
“In my opinion, ether has more exposure to the election result than bitcoin,” he commented through his X account. At the same time, he pointed out that the price of this asset fell more than 26% since Kamala Harris, current vice president of that country, announced that she will be running as a candidate for the Democratic Party.
Analysis suggests that a victory for Donald Trump, currently the candidate for the Republican Party, could boost the price of cryptocurrencies. Since the beginning of the campaign, the former US president has been showing a position in favor of digital assets and promised that, if elected, there will be industry-friendly policies.
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