Trader Says Sell-Off for Ethereum Could Unfold if Demand Zone Where 2,400,000 Wallets Purchased ETH Fails

Widely followed crypto analyst Ali Martinez says that Ethereum (ETH) may be in for another correction if one critical support level breaks.

Martinez tells his 74,000 followers on the social media platform X that $2,300, which is about a 7% correction away from current prices, is an important price level for ETH bulls to hold.

Martinez shares an In/Out of the Money Around Price (IOMAP) chart, which aims to show addresses that are profiting (in the money), breaking even (at the money) or losing money (out of the money) on their positions.

“The key support level for Ethereum is $2,300, where 2.4 million addresses purchased 52.6 million ETH. If this demand zone fails, it could lead to a sell-off as investors might look to minimize losses.”

At time of writing, Ethereum is trading at $2,447.

Looking at Bitcoin (BTC), after accurately predicting a correction to the $57,000 level, Martinez is now anticipating a break towards the $78,000 mark.

“I think the best way to mess with everyone’s dreams would be for Bitcoin to drop to $60,000, rebound to $66,000, retrace back to $57,000, and finally break out towards $78,000!”

But Martinez warns that higher-than-normal volatility could be in store due to a rise in Bitcoin leverage on crypto exchanges.

“Leverage use on crypto exchanges just hit a yearly high, meaning more people are borrowing to make bigger bets. This can increase the risk of big price swings, so it’s important to be cautious!”

At time of writing, Bitcoin is trading for $62,803.

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