ETH’s Decline: 11% Drop and Potential Further Losses
Ethereum (ETH) has seen an 11% decrease over the past month, with its price hovering around $2,300 according to CoinGecko. Some analysts are warning of further declines, predicting that ETH could drop to $1,800 if key support levels are breached. However, others see potential for a rebound, citing historical trends and a possible “bear trap.”
Further Pain for ETH Bulls?
Ethereum has been one of the worst-performing cryptocurrencies in the top 10, dropping by 11% in the last month and 4% in the past 24 hours. One popular analyst, Ali Martinez, highlighted a critical support range between $2,290 and $2,360, where around 1.9 million addresses hold approximately $52.3 million worth of ETH. Martinez believes that if ETH falls below this range, it could crash by 20%, sinking to as low as $1,800. Notably, ETH briefly dropped to $2,260 just a few hours ago.
On-chain metrics also point to a potential further decline for Ethereum. The “In the Money” indicator has dropped by 0.19% on a daily basis, reflecting a decrease in the number of ETH investors currently holding paper profits. Presently, 54% of ETH holders are in profit, while 39% are in the red.
The Bullish Scenario
Despite the bearish outlook from some, other analysts remain optimistic about ETH’s prospects. Phoenix, a well-known X user, believes that Ethereum’s chart has formed a “bear trap,” which could signal a price resurgence in the coming months.
Another analyst, Javon Marks, sees a strong similarity between Ethereum’s current pattern and its 2023 performance, which led to a 165% price surge. According to Marks:
“2023 looks to have been the blueprint for another massive upside that can soon be transpiring in this crypto market. Target is at $4,723.5, and a break above can welcome $8,100+ into play, projecting another near 2X in price, if not much, much more.”
Additionally, Ethereum’s Relative Strength Index (RSI) has dropped to around 30, a level that indicates ETH is oversold. RSI is used by traders to assess whether an asset is overbought or oversold, with readings below 30 often signaling a potential rally. Conversely, an RSI above 70 suggests that the asset may be overbought and could face a correction.
Key Takeaways
- ETH has dropped 11% over the past month and is down 4% in the last 24 hours.
- Analysts like Ali Martinez warn that ETH could fall another 20% to $1,800 if key support levels fail.
- On-chain metrics, such as the “In the Money” indicator, also suggest further downside potential.
- Other analysts are more bullish, predicting a potential resurgence driven by a “bear trap” and historical patterns.
- ETH’s RSI has fallen to 30, signaling that the asset may be oversold and could be poised for a rally.
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