With the price of Ethereum still below $4,000, bears are still in control of the cryptocurrency, making it an uncertain time. A decline below this key psychological level has undoubtedly caused confusion among investors, and the decline is likely to continue unless prices clearly move higher. This was also highlighted by a cryptocurrency analyst who explained that the price of Ethereum could fall further, with the possibility of a crash of more than 20%.
In an analysis shared on the TradingView website, the analyst said: explain It is more likely that the price of Ethereum will decline before seeing another recovery. This happens because the price continues to weaken and the market capitulates in anticipation of when the next action will begin.
The first small upward wave is expected to take the price back to $2,400. However, this is only temporary until the bears intervene again and the selling continues. Once the uptrend breaks down and the downtrend begins, the selling price is expected to begin in earnest and accelerate.
Analysts predict that the price of Ethereum will actually fall from above $4,100 to $3,000. In this case, this means that the price of Ethereum will fall by more than 25%, breaking through several support levels and finally reaching $3,000.
Nonetheless, $3,000 remains a rebound point where Ethereum price is expected to rise again. When this happens, cryptocurrency analysts see the cryptocurrency actually heading towards new all-time highs.
Goals you need to know
The analyst predicts that the first target for Ethereum price after a bounce from the $3,000 level will be to recover the $4,000 resistance. This is the first point of interest for investors seeking profit.
Next is the $4,500 resistance level, which has been a major pain point in the past. If the price breaks above this level, it may be a good idea to take more profits, especially as bears are expected to start making bigger plays to have a bigger impact.
Lastly, the main target is the $5,500 level. This swing target means that Ethereum price has hit a new all-time high, making it actually a good time to start selling. Once this level is restored, analysts expect another bearish move to begin.
Featured image from Dall.E, chart from Tradingview.com
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