Ethereum's Golden Pocket: Will ETH Rise Above $2,800?

Ethereum is currently at a crucial point as it tests the golden pocket range between $2,600 and $2,800. With resistance looming at the $2,800 mark, the market faces a significant moment. Will ETH manage to regain this level and initiate a rise toward $3,000, or will sellers push it back below vital support zones?

Key Takeaways:

Ethereum is testing the vital golden pocket range of $2,600 to $2,800.
A decisive hold above $2,800 could lead to a bullish move toward $3,000.
Analysts emphasize the importance of confirming support levels to avoid significant losses.
Volatility was observed recently, with buyers stepping in to defend the $2,600 support.

Ethereum

Understanding the Golden Pocket and Its Implications for Ethereum

In a recent update, analyst Luca shared insights on Ethereum's performance and how it aligns with his earlier predictions. He highlighted the importance of breaking down below a crucial support range, specifically the golden pocket established between the 0.5 and 0.618 Fibonacci Points of Interest (POIs). According to Luca, once Ethereum dropped below this range, the expectation of continued downside pressure became more plausible.

Luca noted that the anticipated downward movement aimed for the next major support, represented by a high-timeframe support range highlighted in purple. This scenario has been validated as the price confirmed a bounce on low timeframes, exactly as Luca had forecasted.

Ethereum
ETH structure indicating a potential rebound | Source: Chart from Luca on X

From this confirmed support level, Luca believes a rebound upwards is the most likely outcome. However, he emphasized the importance of waiting for additional signs of strength and a clear bottoming formation before fully investing: "Before I start scaling out of my hedges, I want to see additional signs of strength and a clear bottoming formation to confirm that this level is holding," he mentioned.

He also warned that if the price were to dip below this established range, it would negate the possibility of the movement being merely a corrective Wave 2 on the higher timeframes. A breakdown in this case would suggest a more significant structural decline, something Luca is eager to avoid getting trapped in.

The $2,600 Mark: Buyers Step In to Protect Support

Crypto analyst Ted Pillows examined the current market behavior, noting that Ethereum experienced high volatility yesterday. The price nearly approached the $2,600 level before establishing a temporary floor. In the wake of this test, Ethereum is now striving to reclaim the $2,800 level but is encountering significant resistance from sellers at this point.

Ted outlined a clear path for Ethereum's recovery. If it can decisively reclaim and sustain the $2,800 level, this would indicate strong bullish momentum, driving ETH toward the next notable target at $3,000.

On the flip side, Ted cautioned that failing to reclaim the crucial $2,800 level could lead to a downward reversal. Traders should prepare for a potential dip below the $2,500 mark, necessitating a test of deeper support levels before any structural recovery attempts can be made.

Ethereum
ETH trading at $2,719 on the 1D chart | Source: ETHUSDT on Tradingview.com