Crypto Analyst Says Ethereum Price Will Drop To $2,500, Here’s Why
May 09 2024 - 5:00PM
NEWSBTC
The Ethereum price has been closing mirroring the performance of
Bitcoin recently and since the Bitcoin price has been on a
downtrend, the ETH price has followed. However, Ethereum on its own
seems to possess more bearish fundamentals compared to Bitcoin,
leading crypto analysts to believe that the second-largest
cryptocurrency by market cap will fall further from here. Ethereum
Poised To Crash Further A crypto analyst known as Shin Forex took
to the TradingView website to share an interesting analysis of the
Ethereum price. The analysis, which focused on the ETH/BTC chart,
unveiled some concerning developments in the ETH price. Related
Reading: Fundstrat CEO Predicts When Bitcoin Price Will Reach
$150,000 And $500,000 The analyst explained that during this time,
the liquidity in Ethereum has been dwindling. Instead of flowing
toward altcoins like ETH, it is instead flowing toward Bitcoin.
This suggests growing disinterest in Ethereum from investors and as
liquidity flows to Bitcoin, Ethereum has nothing propping it up at
this time. Furthermore, the crypto analyst explains that the
ETH/BTC pair has now broken below its support of 0.05. Now, this
drop below its support level is important given what has happened
each time that it broke. Shin Forex points back to the last two
market cycles, one in 2016 and one in 2019, of the ETH/BTC breaking
below its support. Both times that this has happened, a crash in
the price has followed, before it can rally again. The crypto
analyst does not expect this time to be any different and believes
that ETH/BTC will fall below 0.04. If this happens, it will send
Ethereum spiraling and the analyst has set a price target of around
$2,500 for this. Can ETH Price Survive The Crash? In the short
term, the Ethereum price doesn’t look to good, especially as the
altcoin is currently trending downward inside its current channel,
according to the crypto analyst. However, zooming out to the larger
timeframe can help give an inkling of how the ETH price could
perform after the crash. Looking at Shin Forex’s chart of the last
two times that a formation like this occurred, it has also set a
precedent for money to flow back into Ethereum. In November 2016,
the price had crashed but in a few months, there was a massive
recovery as ETH/BTC rose to a new all-time high. Source:
TradingView.com A similar thing happened the next time in 2019,
with the crash coming ahead of a market rally, albeit a bit slower
at this time. So, if this trend holds, then the ETH crash is
inevitable. However, a recovery is expected that will likely
kickstart the beginning of another massive rally. Related Reading:
Cardano Entry Of A Lifetime: Analyst Predicts 5,600% Rally To $25
For now, bears continue to dominate the Ethereum market and have
successfully dragged the price down below $3,000. It is trading at.
$2,975 at the time of this writing, with a small 0.36% decline in
the last day, according to Coinmarketcap. ETH price falls below
$3,000 | Source: ETHUSD on Tradingview.com Featured image from
Quora, chart from Tradingview.com
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