Analyst Predicts Ethereum Crash, Warns Investors to Brace for $2,700 Target
Amid the ongoing violence in the cryptocurrency market, Ethereum (ETH), the second largest cryptocurrency by market cap, Market capitalizationIt didn’t save. Last week, ETH experienced a significant price drop of 9%, falling to the $3,130 level.
As market participants closely monitor the situation, attention is now focused on the critical levels that must hold to prevent a further downturn, which could lead to significant losses and high liquidation rates not seen in months.
The moment that determines the success or failure of Ethereum’s price
Cryptocurrency analyst “Inspo Crypto” noted that the Ethereum price has retreated to the levels of early May.
Depending on the For analysts, the upcoming 8-hour trading period, represented by daily candlesticks, will be a key juncture to determine whether bulls have surrendered or are ready to bounce back.
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A retracement above the levels mentioned above can be considered as a breakout from the bearish trend. However, if Ethereum fails to retest the levels, Bottom trend channel If the price is at $3,170, it could open the way for a further decline to $2,700, which could in turn impact altcoins and lead to significant losses across the market.
If the price holds at $3,170, it could go on an upward trajectory to $5,000.
The analyst also said Claim In his opinion, Ethereum has been operating within a new trend channel since October 2013. Therefore, if ETH manages to hold its price within the $3,170 range without breaking down, it will confirm its upward trajectory towards $5,000. It is important to note that this period extends until the end of the year.
Also, we need to consider that Ethereum still operates in the following way: Long term trend channel.
If the described scenario plays out, it would confirm the long-term trend channel, indicating that ETH entered a downtrend between August 2023 and February 2024, and is now on track to rally towards $8,000 in the coming months.
However, it is important to recognize that this analysis does not take into account external factors such as monetary policy decisions or geopolitical conflicts.
Nevertheless, if Ethereum holds the $3,170 level and starts to rise, Altcoin Season According to analysts, it is becoming more and more feasible.
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Ultimately, ETH’s next move will have implications for the future direction of ETH and the broader cryptocurrency market, especially the altcoin market, which has seen significant losses recently.
At the time of writing, ETH is trading at $3,130, reflecting a 5% drop in the last 24 hours. As a result, as the analyst emphasized, it is important for the token to close above the aforementioned critical level of $3,170 in the coming hours to prevent potential further losses.
Featured image for DALL-E, charts from TradingView.com
