Crypto analyst Poseidon (@CryptoPoseidonn) has released a detailed price prediction for Ethereum (ETH). His analysis, delivered to his 123,000 followers on social media platform X, revolves around the pivotal $2,160-$1,900 price range which has historically served as a significant high-timeframe (HTF) support since the summer of 2021.

ETH Price Analysis: $8,000 Is Possible If …

According to Poseidon, Ethereum recently retested what he describes as the “most crucial support level on the chart” after a significant breakout earlier in the year. This price zone has consistently acted as a key battleground for bulls and bears, making it a central focus of technical analysis. “Early in 2024, we broke out of this level, leading to a substantial price increase because this was the only resistance holding us back. Now, after 200 days, we are back at the same level, and for me, buying ETH here is an opportunity,” Poseidon detailed in his analysis.

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The resilience of the $1,900 support level is critical to Ethereum’s bullish outlook. A breach below this level without quick recovery would likely indicate a cycle top and could precipitate a drop to as low as $1,000, marking a significant reversal in the prevailing market trend. However, Poseidon assesses this risk as low, expressing confidence in the support’s reliability: “I find this scenario highly unlikely. I believe the price will bottom out in this range, marking a significant HTF low.”

Looking forward, Poseidon sets conditional targets that rely on Ethereum reclaiming and stabilizing above certain price thresholds. Initially, ETH needs to breach the $3,000 mark, followed by $3,500, to set the stage for a potential rally to new highs. “If we manage to surpass $5,000, I think $7,000-$8,000 is realistic. Although I believe we could go much higher, anything above $8,000 would be risky for me to stay in longs. I’d be extremely cautious and would sell quickly if the daily trend breaks down,” he stated.

To justify these targets, Poseidon employs Fibonacci retracement levels, a common tool among traders for predicting potential reversals, support, and resistance levels based on prior market movements. These projections, however, are contingent on the market maintaining its structure without significant trend breaks.

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The transition to a bullish market phase for Ethereum hinges on several key technical indicators. First, Ethereum needs to reclaim and hold the 200-day EMA to signal strengthening momentum. Second, the crypto asset must maintain support above the range low which is crucial for continued bullish sentiment. Third, overcoming the daily supply zone from $3,100 to $3,200 will likely test Ethereum’s resilience, which if successful, could solidify the asset’s upward trajectory.

Poseidon elaborates on the challenges of this bullish flip, noting the current bearish sentiment and the difficulty of breaking above these resistance levels. “While we’re sitting at a strong weekly and monthly support level, we’re still in a downtrend. To confirm this level as the bottom, we need to shift the daily trend to bullish again.”

Adding to his technical analysis, Poseidon highlights the H8 timeframe and its EMA200 as the “GOAT” (Greatest of All Time) for trend determination. “I’ve studied the H8 EMA200 on ETH since 2018, compared it with other EMAs and timeframes, and I can confidently say that the H8 EMA200 is the GOAT,” he asserts. This particular timeframe and moving average provide a unique insight into shorter-term price movements and are key to Poseidon’s trading strategy.

At press time, ETH traded at $2,753.90.

Featured image created with DALL.E, chart from TradingView.com