Ethereum (ETH) Market Pullback Sees the Cryptocurrency Drop Close to 1% in the Last 24 Hours

The broader market pullback has seen Ethereum (CRYPTO: ETH) trading at the price of $3,253, down close to 1% in the last 24 hours.

However, crypto analyst Ali Martinez is bullish on Ethereum, maintaining that even after the recent bearish trend, Ethereum can still hit $7,000 in the long term when it retraces to $2,900.

According to Martinez, this represents a key support zone that could act as a springboard for a giant move higher.

But while this upbeat potential encourages Ethereum fans, the short-run technical and market scenario appears bearish.

Bearish Bias In Ethereum Price Current Market Performance:

The latest price action in Ethereum shows signs of market uncertainty. According to data from CoinMarketCap, the cryptocurrency has dropped 0.64% in the last 24 hours, and trading volumes have fallen by 52.45%.

Ranking second with a market cap of $391.99bn, Ethereum has seen a downward trajectory recently.

A descending channel formation is forming on Binance's ETH/USD hourly chart, indicating that the prices are likely to continue with bearish momentum.

Consolidating around the price of $3,200, which remains a critical support level and could determine the next move in Ethereum, if this level breaks, we can expect a retracement to the $2,700 we saw targeted a few weeks ago, which aligns with Rumorista Martinez's predictions.

Adding to the bearish signs is the negative momentum on the Awesome Oscillator (AO) on the One-Hour chart. The indicator's red bars show that the sellers are still dominant, making a short-term reversal less likely.

In the past, however, Ethereum has shown resilience at these levels; $3,200 remains a crucial level to watch.

Analyst Presents A Bullish Case For $7K:

“As turbulent times offer the third kind of silver lining to the market, Rumorista adds that he sees Ethereum must retracement to $2,900 before it can hit $7,000,” said Martinez.

“Such a drop should not look terrifying, but a drop of this magnitude would greatly benefit the second consolidation and accumulation phase of the next bull run.”

Past tests of key support have seen massive rallies in the ETH price. According to Martinez, "2,900 might be a strong psychological and technical support zone where buyers join in, and we could see this token flying onto new all-time highs."

Mixed messages are being sent by the Ethereum technicals. The picture is bearish in the short term, with bearish AO readings and a descending channel pattern.

However, over the longer term, Ethereum has shown resilience at key support levels, and a bounce-back is possible.