Ethereum is pointing to a major accumulation zone amid declining price performance

Volatility continues to dominate the overall cryptocurrency market, causing major digital assets such as… Ethereum To retest key support levels that previously led to an upward move. With ETH under notable downward pressure, its price performance shows that the altcoin is about to enter a crucial zone.

Potential accumulation area ahead of Ethereum

Recent price action shows that Ethereum, the second largest digital asset, is experiencing an important moment that could determine its next direction. Technical analysis platform Rose Premium Signals dives into ETH price action Highlights That the altcoin may be preparing for an accumulation zone.

The platform’s forecast comes as ETH shows signs of waning momentum, supported by overall bearish performance Crypto market. Interestingly, long-term investors looking to profit from falling prices before a potential recovery may be attracted to the current recession.

Given the ongoing consolidation following the recent volatility, this phase could set the stage for the next big spike in ETH prices, possibly upward. New all-time high. In the meantime, monitoring key support and resistance levels will be crucial in determining the strength of the Ethereum market structure to undergo another significant upward movement.

According to Rose Premium Signals, Ethereum price has now fallen below the critical support zone on the four-day timeframe. This breakout coincides with ETH’s inability to maintain key price levels amid unfavorable market conditions.

Given Bitcoin’s current correction, ETH may continue to pull back towards $2,807, offering a potential accumulation area before then. recovery. However, if the altcoin fails to make a recovery, such a collapse could pave the way for increased volatility towards lower support points.

The Rose Premium Signals chart shows that ETH has formed a bullish pattern indicating an upward trajectory. However, this chart indicates a possible deeper correction before the bullish continuation resumes.

If Ethereum resumes its rally, Rose Premium Signals predicts a significant rise to the $7,000 level. With increasing adoption Ethereum blockchainThis positive trend may support The next rise of the altcoin As investors evaluate potential resistance levels.

ETH’s downward movement is crucial for a major rally

Rose Premium Signals’ bold forecast matches those of Ali Martinez, the technical expert and investor who made it happen anticipation A significant rise to the $7,000 level. Interestingly, Martinez also expects a significant decline to a key support level before ETH resumes its uptrend.

Martinez points to a drop to $2,900, which is bullish for him Ethereum Because it represents an excellent opportunity to buy on the decline to the $7,000 threshold. His forecast is supported by the formation of a key chart, especially a head and shoulders pattern, which often serves as a precursor to a rally.

Currently, Ethereum is trading at $3,297, indicating a slight increase of about 0.43% over the past 24 hours. ETH trading volume has fallen by approximately 7% in the past day, indicating declining investor sentiment.

Featured image from Unsplash, chart from Tradingview.com