Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is currently at a pivotal level. According to technical analyst Ali Martinez, if ETH manages to sustain above the $2,500 support level, the price could rebound to $4,000 or even $6,000. However, if this support fails, the next significant target could be $1,700.
Market Dynamics and Capital Flow
Martinez emphasizes that the inflationary or deflationary nature of Ethereum is not the primary concern. The crucial factor is whether ETH can maintain its position at this key support level, where approximately 12.18 million wallets hold a combined 63 million ETH.
Additionally, Martinez has observed a shift in market capital, with funds flowing out of Bitcoin and Ethereum into stablecoins. This movement indicates that investors remain cautious, with no clear signs of an approaching altcoin season.
Current Market Performance
At the time of writing, Ethereum's weighted average price stands at $2,844. Over the past 24 hours, the cryptocurrency has gained 3.13%, though it has declined by 11.6% over the past seven days.
Supply Dynamics and Historical Context
Recent data from CoinMarketCap reveals that Ethereum’s supply has expanded to levels last seen in September 2022. This increase surpasses the supply levels recorded when Ethereum transitioned to the Proof-of-Stake (PoS) consensus mechanism.
