Crypto analyst Ali Martinez offered an important analysis on the future of the leading altcoin Ethereum. According to Martinez, a critical support level has been established for the second-largest crypto asset by market cap. According to its analysis, this support level ranges from $2,000 to $2,430.
Emphasizing this range that is decisive for the future of Ethereum, Martinez said, “If the crisis continues, follow the critical support zone between $ 2,000 and $ 2,430 for Ethereum.” said. Emphasizing that the amount of Ethereum held in this range is quite high, Martinez stated that approximately 9.37 million addresses hold ETH worth approximately $53 million in this range.
In his ETH analysis, Martinez used the In/Out of the Money Around Price (IOMAP) indicator developed by IntoTheBlock.
Although the indicator itself cannot be used to determine exact resistance or support points, information about the concentration of funds around a particular price can give a clue about the potential of the asset’s movement rate. According to this indicator, the average price at which cryptocurrencies are purchased, that is, the cost, is determined and compared with the current price. If the Current Price is greater than the average cost, this address is determined as “In”, that is, “in profit”. If the current price is less than the average cost, the address is defined as “Out”, that is, “at a loss”.
The predictions made by analysts using the indicator are based on the psychology of its owners; Traders who remain at a loss for a long period of time tend to sell or dispose of their assets at the entry point to avoid losses if the asset pulls back for any reason.
This analysis offers investors an important insight into the current state and possible future of Ethereum. In particular, the impact of established support levels on Ethereum’s price movements should be considered and this information should be taken into account in investment decisions.
Another altcoin on the analyst’s radar is VeChain (VET). Martinez stated that price movements between June and December 2020 are important when evaluating the price of VeChain (VET). According to Martinez, VET’s current performance is similar to movements during this period.
According to Martinez’s analysis, VET’s price could experience a pullback of around 18% before rising significantly. This may be a point to pay attention to for short-term investors. If this pattern continues, VET’s price could retreat to $0.032, potentially setting the stage for an ongoing bull market. In such a scenario, the price of VET could go up to $0.6, which is quite a large value compared to the current price.
VeChain is trading at $0.0387 at the time of writing.
Martinez’s evaluations offer an important perspective to understand the dynamics in the cryptocurrency market and guide investors. However, every investment decision should be determined by personal preferences and risk tolerance.
You can access current market movements here.
