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Ethereum Tests Critical $1,943 Support: Analyst Projects $7,000 Target if Channel Holds

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TLDR:

  • Ethereum trades at $1,943, testing the lower boundary of an ascending channel established since 2020 lows. 
  • Technical analysis projects potential $7,000 target representing 260% upside if current support holds firm. 
  • Weekly close below $1,850 could invalidate the multi-year pattern and trigger decline toward $1,200-$1,500. 
  • Asymmetric risk-reward profile shows 20-30% downside risk versus 260% upside potential at channel boundary.

 

Ethereum is trading at a crucial support level near $1,943, according to recent technical analysis. Market observers are watching closely as the cryptocurrency tests the lower boundary of a multi-year ascending channel.

A successful bounce from this level could set the stage for a substantial rally. However, a breakdown below current support may trigger extended weakness across the market.

Channel Structure Points to Binary Outcome

The ascending channel pattern has guided Ethereum’s price action since 2020 when the asset traded around $80 to $100. This technical formation has demonstrated remarkable consistency over the past four years.

Traders have observed multiple respected touches of both upper and lower boundaries throughout this period. Each interaction with the channel’s lower trendline has historically presented buying opportunities.

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Technical analyst Bitcoinsensus recently highlighted this setup on X, noting the critical nature of current price levels. The analysis emphasizes how Ethereum has formed a series of higher lows within the channel structure.

These formations confirm the pattern remains intact despite periodic volatility. The 2022 bear market brought a brutal test of the lower boundary, yet the channel held.

Current market conditions place Ethereum at the channel’s lower edge, creating what analysts describe as a high-conviction zone.

The price sits at approximately $1,943 as of writing, marking the last line of defense for the bullish macro structure. Trading volume and momentum indicators will prove essential in determining whether this support level holds firm.

The measured move methodology applied to this channel structure projects a potential target around $7,000. This represents roughly 260% upside from current trading levels.

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Such projections rely on the assumption that the channel pattern continues to govern price behavior. Market participants are now weighing the probability of this outcome against alternative scenarios.

Path Forward Presents Asymmetric Risk Profile

Should Ethereum successfully defend current support levels, the projected path involves several intermediate milestones. An initial bounce would need to reclaim the $2,500 to $2,800 resistance zone that previously served as support.

Subsequently, breaking through the $3,500 to $4,000 range becomes necessary to confirm bullish momentum. The previous cycle high near $4,800 to $5,000 would then come into focus before any upper channel breakout.

The analysis notes what appears to be a recent “fakeout” below support levels, potentially representing a liquidity grab. Such price action often precedes genuine directional moves in cryptocurrency markets.

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Volume profiles during any bounce will provide critical information about the strength of buying interest. Additionally, Ethereum rarely sustains independent rallies without corresponding Bitcoin strength.

Risk factors remain present despite the compelling technical setup currently in view. A weekly close below $1,850 would invalidate the multi-year channel pattern entirely.

Breakdown scenarios could push Ethereum toward the $1,200 to $1,500 range based on historical support zones. Broader macro conditions including recession fears or liquidity constraints could override technical considerations.

The risk-reward profile appears asymmetric at current levels according to proponents of this technical view. Downside risk to channel invalidation measures approximately 20% to 30% from present prices.

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Conversely, upside potential to the projected target exceeds 260% should the pattern play out. This calculation assumes the channel structure maintains its historical validity and market conditions remain supportive of risk assets.

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Crypto World

Why Bittensor (TAO) Is Today’s Best-Performing Crypto

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Bittensor (TAO) Price Performance.

Bittensor’s TAO token climbed nearly 8% to become the top gainer after Upbit, South Korea’s largest cryptocurrency exchange, announced its listing.

The rally enabled TAO to outperform the broader crypto market, which remained under pressure as the total market capitalization declined 2.53% over the past 24 hours.

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Upbit Introduces TAO Trading Pairs Amid Turbulent Market Conditions

Upbit confirmed that TAO will be available for trading against three trading pairs: Korean won (KRW), Bitcoin (BTC), and Tether (USDT). Trading is scheduled to begin on February 16 at 16:00 Korean Standard Time (KST). Furthermore, deposits and withdrawals will open within approximately 90 minutes of the announcement.

“Deposits and withdrawals are supported only through the specified network (TAO – Bittensor Network). Deposits and withdrawals via EVM networks are not supported. Please verify the network before depositing,” the notice read.

As is standard for new listings on the platform, Upbit will implement temporary trading safeguards at launch. The exchange will restrict buy orders for approximately five minutes after trading begins.

During that same window, it will block sell orders priced more than 10% below the previous day’s closing price. For roughly two hours after the listing, Upbit will permit only limit orders.

The listing triggered a price surge for TAO, reinforcing a pattern commonly observed when tokens secure new exchange support. Following the announcement, the token advanced nearly 8%.

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At the time of writing, the altcoin was trading at $207.6. Moreover, TAO’s rise pushed it to become the largest gainer among the top 100 cryptocurrencies on CoinGecko.

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Bittensor (TAO) Price Performance.
Bittensor (TAO) Price Performance. Source: TradingView

The latest rally builds on the token’s recent momentum. TAO has gained more than 21% over the past week after trending predominantly downward since the beginning of the year.

TAO Price Prediction: What Comes Next?

Meanwhile, analysts remain optimistic about the artificial intelligence-focused blockchain. Analyst Michaël van de Poppe signaled a bullish outlook for Bittensor’s token. He projected at least a “mean reversion” toward approximately $300.

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“I think that protocols working on AI <> Crypto are a must have in every portfolio and I’m glad I’ve added funds into this position. I think that we’re going to see more strength going forward from here,” Van de Poppe wrote.

Looking ahead, TAO’s short-term trajectory will likely depend on whether the listing-driven momentum converts into sustained trading volume and continued buyer interest. If broader sentiment stabilizes and participation remains elevated, the token could extend its recovery.

However, weakening momentum or renewed market pressure may temper gains. As exchange accessibility improves, overall crypto market conditions will also be a key factor.

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Russia Sees $648M In Daily Crypto Transactions As Gov Pushes Regulation

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Russia Sees $648M In Daily Crypto Transactions As Gov Pushes Regulation

Russia’s finance ministry and central bank are reportedly calling on the government to speed up the rollout of crypto market regulations amid booming adoption of digital assets, claiming citizens are spending almost 50 billion Russian rubles ($648 million) on crypto daily. 

According to a report from Russian news outlet RBC on Thursday, Russia’s deputy finance minister, Ivan Chebeskov, emphasized the importance of regulating the market, as most crypto spending is happening primarily through unregulated channels.  

“We have always said that millions of citizens are involved in this activity, these are trillions of rubles from the point of view of citizens in use, in savings,” he said as part of a panel discussion on digital assets at the Alfa Talk conference, adding: 

“Also, for example, one of the figures, about 50 billion rubles per day is the turnover of crypto in our country. That is a turnover of more than 10 trillion rubles per year, which is now happening outside the regulated zone, outside our attention.” 

Russia’s deputy finance minister Ivan Chebeskov. Source: The Ministry of Finance of the Russian Federation

The daily volume of 50 billion rubles cited by Chebeskov equates to roughly $648 million, with the yearly figure equating to $129.4 billion. It marks strong crypto adoption within the country as it tangles with economic sanctions slapped on the country by the US and Europe.

The European Union, in particular, has recently raised concerns over Russia’s use of crypto to bypass sanctions, and is pushing to “ban all cryptocurrency transactions with Russia” as part of a new sanctions package, according to a report from the Financial Times on Feb. 10. 

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In late December, Russia’s central bank released a policy proposal looking to enable both qualified and non-qualified investors to buy certain crypto assets, marking a stark contrast to its earlier push for an outright ban on crypto.

The proposal seeks to provide a strict limit on non-qualified investors, allowing them to hold up to 300,000 rubles ($3,834) worth of crypto a year, while allowing broad access to the market, excluding privacy coins, for qualified investors. 

Related: Russia is blocking WhatsApp to push ‘surveillance’ app, company says

Speaking on the same panel as Chebeskov, the first deputy chairman of Russia’s central bank, Vladimir Chistyukhin, said he hopes to see crypto market regulation adopted by the government in the spring session of the State Duma, the first of two annual legislative periods in Russia.  

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