TL;DR
- ETH has dropped 11% over the past month, with analysts warning of a possible further decrease to $1,800 if key support levels fail.
- Others predict a potential rebound, citing a “bear trap” pattern and historical trends.
Further Pain for ETH Bulls?
Ethereum (ETH) has been among the worst-performing cryptocurrencies (from the top 10 list) lately, with its price dipping by 11% on a monthly scale. It is down 4% in the past 24 hours and currently trades at around $2,300 (per CoiGecko’s data).
One popular analyst who thinks ETH’s decline could be far from over is X user Ali Martinez. He outlined the $2,290-$2,360 range as a “key support” level, where 1.9 million addresses hold approximately $52.3 million worth of the asset. The crypto enthusiast believes ETH could crash by 20% to as low as $1,800 should its price dip below that zone. Recall that its valuation briefly plunged to $2,260 a few hours ago.
Certain on-chain metrics also suggest that Ethereum could experience a further correction in the near future. One example is the “In the Money” indicator, which is down by 0.19% daily. It shows the change in the number of ETH investors currently sitting on paper profits. As of now, 54% are in the green, while 39% are underwater.
The Bullish Scenario
Contrary to Ali Martinez’s assumption, numerous other analysts are optimistic that ETH is poised for a revival. The X user Phoenix thinks the asset’s chart has formed a “bear trap,” signaling a potential resurgence in the following months. JAVON MARKS claimed that Ethereum’s pattern seems to have mirrored the one from 2023, which led to a 165% price increase.
“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,” the analyst argued.
Last but not least, ETH’s RSI has recently plummeted to a bullish ratio of around 30. The Relative Strength Index (RSI) helps traders assess overbought or oversold conditions and thus predict possible
