Crypto Analyst Predicts Ethereum Price Could Hit $7k if Key Support Holds

Highlights:

• Ether forms a bullish inverse head-and-shoulders pattern, signaling a potential breakout.
• The key $2,700 support level is crucial for ETH’s bullish momentum continuation. 
• Ethereum price has seen a 10% decrease in price over the past 24-hours.

Ethereum (ETH) price has faced sharp market corrections, struggling to break the $4,000 resistance. The second-largest cryptocurrency saw a 10% drop in the past 24 hours, reflecting broader market weakness. Today, the global crypto market cap is at $3.25 trillion, with a decrease of 1.92%. Additionally, the heightened volatility and liquidations sent Bitcoin below $100k. However, analysts believe that if important support is held, then Ethereum could rally to $7,000 even amid the market downturn.

Analyst Ali Forecast ETH Price Could Hit $7k if Key Support Holds

Crypto analyst Ali tweeted that Ethereum’s price action appears to form an inverse head-and-shoulders pattern, a historically bullish structure. He emphasized that Ethereum must hold above the crucial $2,700 support level for this pattern to remain valid. 

A successful defense of this zone could open the door for a potential rally, with price targets extending as high as $7,000. At the time of analysis, the ETH price was trading at approximately $2,705, reflecting a 10% decline.

Key resistance lines from Fibonacci retracements appear on Ali’s chart. The opening resistance is almost $3,185, very close to the 0.618 Fibonacci level. Break of this level could enable targets of $3,550, $4,100, and $4,927. More bullish momentum may result in a peak at $6,943; it was the 1.786 Fibonacci extension. If Ethereum is not able to hold $2,700 support, the bullish structure could fail again possibly dropping to $2,500 or $2,100.

If this is a head-and-shoulders pattern, #Ethereum $ETH must hold above $2,700 to keep the bullish structure intact and have a chance of reaching $7,000! pic.twitter.com/nR6TDg2jA4

— Ali (@ali_charts) February 3, 2025

ETH Price Hovered at $2,700 as Market Faces Intense Volatility

ETH price hovered at $2,700 on February 3, reflecting a turbulent market amid recent downward pressure. Ethereum’s price chart displayed a descending channel pattern, signaling a short-term bearish trend that saw the cryptocurrency dip to $2,683 before staging a minor recovery.

However, Ethereum moved alongside much increased volatility as it found it hard to regain stability above key support points. Resistance proved to be firm at almost $3,000, while $2,500 worked as a key zone of support. ETH attempted to break out of the downward trend, while analysts noted a sharp decline and a rebound.

Key Technical Indicators and Targets

The immediate support for ETH stands at $2,500, a critical level that previously saw strong buying interest. If this level fails, the next significant support could be at $2,200. And if bears mount more pressure, a breakdown below this point might extend losses toward $2,000.

The first resistance target is $2,750, aligning with the upper boundary of the descending channel. If ETH breaks above this level, the next key resistance lies at $3,000. A successful breakout above $3,000 could pave the way for a rally toward $3,200 and, ultimately, $3,500, which represents a strong psychological barrier.

Technical indicators pointed to mixed sentiment in the market. The Relative Strength Index (RSI) at 33.13 suggests that ETH remains oversold, indicating a potential relief rally if buying pressure increases. However, the Moving Average Convergence Divergence (MACD) remains bearish. The MACD line is still below the signal line, implying continued downward momentum unless a strong bullish divergence forms.