Ethereum experienced extreme volatility last Monday, plunging over 30% in under 24 hours amid escalating trade war fears before rebounding sharply. Despite the recovery, ETH remains significantly weaker than other altcoins, trading at historically low levels relative to Bitcoin.
Top analyst Carl Runefelt’s technical analysis reveals that Ethereum is holding a critical horizontal support level around 0.028 on the ETH/BTC chart. This key juncture could mark a turning point for ETH. If the support holds and bulls step in, it may trigger a massive parabolic move, potentially igniting the long-awaited alt season. However, failure to hold this level could indicate further downside ahead.
Ethereum’s underperformance has raised concerns among investors, with sentiment remaining mixed as the market awaits a clear confirmation of trend direction. The next few weeks will be crucial in determining whether ETH can start catching up to its peers or if another leg down is on the table.
On the ETH/USD chart, Ethereum is trading at $2,780 after testing the critical 200-day moving average at $2,482 and the 200-day exponential moving average at $2,288. These long-term support levels have held since July 2020, confirming that Ethereum’s macro trend remains intact despite recent volatility.
For Ethereum to reverse the short-term bearish trend and signal renewed strength, bulls must reclaim the $2,800 mark and hold it as support. A push above the psychological $3,000 resistance would further shift sentiment from bearish to bullish, potentially triggering a move into key supply zones and setting the stage for a major rally in the coming months.
Tags: Ethereum, ETH/BTC, Ethereum price, technical analysis, support levels, resistance, trend reversal
Source: https://www.newsbtc.com/news/ethereum/ethereum-is-testing-key-support-on-the-eth-btc-chart-a-parabolic-move-could-be-next/