ETH In Danger Of Falling Despite Positive Sentiment, Needs To Break $2,400 Says PrimeXBT Analyst Kim Chua
Things have started to look positive for the cryptocurrency market, including Etheruem. The second largest crypto by market cap managed to ride a wave of positive sentiment from none other than Elon Musk.
Musk recently revealed that he, Tesla, and SpaceX all held BTC, but also mentioned Ethereum as being part of his bag, and of course Doge. This has seen the price of Bitcoin almost top $40,000 and Ethereum come in at $2,300.
While many experts are now pointing towards a recovery in ETH price, the chart still says the token is not out of danger yet, not at least after it breaches $2,400, explains PrimeXBT Analyst Kim Chua.
With the area around $1,700 tested four times and failing, it does look like a strong support. However, traders need to take note that $1,700 is also the neckline of a bearish descending triangle which when breached, could take ETH back down to $800. Hence, protecting the $1,700 is very crucial.
While I do not think that the level would break now, ETH price is not out of the woods until it crosses $2,400 which will in turn flip very bullish for ETH due to it becoming a double bottom which could take it back to $3,300, she added.
Hence traders need to be aware that the level around $2,400 is a very important level to watch in the coming days. We want to see ETH close above $2,400 in order for it to flip bullish.
About Kim Chua, PrimeXBT Market Analyst: Kim Chua is an institutional trading specialist with a track record of success that extends across leading banks including Deutsche Bank, China Merchants Bank, and more. Chua later launched a hedge fund that consistently achieved triple-digit returns for seven years. Chua is also an educator at heart who developed her own proprietary trading curriculum to pass her knowledge down to a new generation of analysts. Kim Chua actively follows both traditional and cryptocurrency markets closely and is eager to find future investment and trading opportunities as the two vastly different asset classes begin to converge.