Ethereum Price Analysis and Predictions
Ethereum Price Expected to Drop Further, Analysts Predict
The Ethereum price has been closely following the performance of Bitcoin in recent weeks, and as Bitcoin continues on a downtrend, Ethereum seems to be heading in the same direction. However, analysts are pointing to some bearish fundamentals specific to Ethereum that could lead to a further drop in its price.
Ethereum Poised To Crash Further
One crypto analyst, known as Shin Forex, recently shared an analysis on the TradingView website that highlighted some concerning developments in the Ethereum price. The analysis focused on the ETH/BTC chart and revealed a decrease in liquidity flowing towards Ethereum, with more investors favoring Bitcoin instead. This shift in liquidity suggests a growing disinterest in Ethereum and leaves the altcoin vulnerable without support.
Additionally, the analyst pointed out that the ETH/BTC pair has broken below its support level of 0.05. Historically, whenever this support level has been breached, a price crash has followed. Drawing parallels to previous market cycles in 2016 and 2019, the analyst predicts that Ethereum could fall below 0.04, leading to a significant price drop with a target of around $2,500.
Can ETH Price Survive The Crash?
In the short term, the Ethereum price appears bearish as it continues to trend downward within its current channel. However, looking at historical data and previous market cycles, there is hope for a potential recovery post-crash. Shin Forex’s analysis of past formations suggests that money could flow back into Ethereum following a price crash, leading to a significant rally.
While bears currently dominate the Ethereum market, pushing the price below $3,000, there is anticipation for a recovery that could kickstart a new bullish trend. At the time of writing, Ethereum is trading at $2,975 with a slight 0.36% decline in the last day, according to Coinmarketcap.
Analysts and investors will be closely monitoring the Ethereum price in the coming days to see if it follows the predicted trajectory or if any unexpected developments occur.
Featured image from Quora, chart from Tradingview.com
