As the Ethereum price struggles around the $2,000 support, investors are wondering when the digital asset will hit a bottom. The bottom is heavily influenced by the Bitcoin price, which sets the tone for the entire market. However, a crypto analyst has outlined key indicators to look out for that could confirm whether Ethereum has hit a bottom and is poised to move upwards.
Keep an Eye on Ethereum Closing Above $2,100
Currently, Ethereum is still below the $2,100 mark, with analyst Rawl highlighting this level as crucial to break. The failure to close above $2,400 initially and complete a weekly close suggests that this level may be significant.
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To confirm whether this is the bottom, Ethereum needs to close above $2,100 on the weekly chart. Since it didn’t achieve this milestone last week, there is another opportunity this week to make the close.
A close above $2,100 would signal the local bottom and set the stage for a price increase. The initial move could push the altcoin to $2,400, with a potential secondary move towards $2,800-$3,000, representing a 50% increase from the current level. The analyst predicts a choppy period before breaking above $2,100 and aiming for $2,800–3,000.
Potential for Bearish Takeover
There is a chance that Ethereum may not close above $2,100, leading to a fall below this level and putting bears in control. This scenario could trigger a sustained decline, keeping the price below $2,000.
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Even if Ethereum closes above $2,100 and sees the projected rally, the analyst warns of a larger correction looming. Despite this, there is optimism for a continued rally towards $6,500-$8,000 for a new peak.
Featured image from Dall.E, chart from TradingView.com