Analysts Share Forecasts As Ethereum Price Struggles Below $4,000, And It’s Very Bearish
Ethereum's price has recently struggled due to bearish pressure from Bitcoin's decline, dropping below $4,000 with further breakdown risks. Crypto analyst Melikatrader identifies a recovery structure around $3,700, suggesting possible short-term upward corrections toward $4,080-$4,180, but notes resistance and bearish patterns could lead to a crash below $4,000. Analyst CRYPTO Damus predicts the current trend might signify a cycle top, likening it to past bear market transitions in 2018 and 2021, cautioning that the bull run for Ethereum may be over, signaling potential price declines.
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Ethereum's Recent Price Decline
In the last few weeks, the Ethereum price has performed poorly, primarily due to the bearish pressure triggered by the Bitcoin price decline. After losing support above $4,000, the second-largest cryptocurrency by market cap is showing troubling signs of a breakdown that could spiral further. Multiple analysts have weighed in on the Ethereum price trajectory, offering predictions ranging from recovery to a potential crash.
A Recovery And Then A Crash
Crypto analyst Melikatrader has highlighted a significant structure forming in the Ethereum price: a pattern of potential recovery. Recently, Ethereum completed a liquidity sweep around $3,700, a process referred to as “Hunting.”
With the liquidity sweep completed, the analyst suggests this level could form a base for correction upwards. Ethereum has also shown consolidation between $3,700 and $3,800, marking this range as an important area of interest. If bulls can claim and maintain this level, it might lead Ethereum into another bullish uptrend. This could push the price into the next supply zone at $4,080-$4,180 before any major downward correction.
Bearish Market Concerns
However, despite potential for recovery, Melikatrader also warns of a bearish market structure. As the ascending trendline progresses, Ethereum is expected to face resistance around $4,100. If bears manage to reject the price at this level, Ethereum’s price could plunge back below $4,000, resuming the bearish trend.
Analyst CRYPTO Damus Predicts A Cycle Top
Contrary to views of a temporary downtrend, crypto analyst CRYPTO Damus believes the current price movement could signify the cycle top for Ethereum. In a post on X, Damus draws comparisons between the current trend and the cycle tops of 2018 and 2021 using weekly charts.
He notes similarities, such as consistent green candles followed by red candles, signaling the end of a bull market and a transition into a bear market. While admitting deviations in past market cycles, Damus argues that if Ethereum follows the same pattern, the ongoing bull run may already be over, and investors should prepare for a significant downturn.
Conclusion and Featured Insights
Although analysts present differing opinions on Ethereum’s trajectory, the overall sentiment underscores uncertainty in the market. Whether Ethereum pulls off a recovery or succumbs to a significant crash remains to be seen. Featured image: Dall.E, chart: TradingView.com.