With Ethereum price still below $4,000, bears are still in control of the cryptocurrency, making this time uncertain. This drop below this major psychological level has undoubtedly caused turbulence among investors, and in the absence of a definitive rise in prices, it appears that the decline is destined to continue. This is also highlighted by a crypto analyst, who explained that the price of Ethereum could be destined for an even greater decline, with a possible crash of over 20%.
In the analysis shared on the TradingView site, the analyst explain that it is more likely that the price of Ethereum will experience a decline before experiencing another recovery. This comes as the price continues to weaken and the market capitulates in anticipation of the next wave of action beginning.
There should be a first small wave of increase, which would bring the price back towards $2,400. However, this would only be temporary before the bears intervene again and the selling continues. Once the uptrend breaks and the decline begins, it should be rapid as sales take off.
The analyst predicts that Ethereum price would fall from over $4,100 to $3,000. In this case, this would mean a drop of over 25% in the Ethereum price, breaking through several support levels, before finally finding its footing at $3,000.
Nevertheless, $3,000 remains the rebound point for which Ethereum price is expected to rise again. Once this happens, the cryptocurrency analyst sees the cryptocurrency heading to new all-time highs.
Targets to know
After the rebound from the $3,000 level, the analyst expects the first objective of Ethereum price to be to reclaim the resistance at $4,000. This is the first point of interest for investors looking to make profits.
Next is the $4,500 resistance level which has been a major problem in the past. Once the price crosses this level, more profit taking is advised, especially since the bears should start playing more to have more impact.
Finally, the major objective is at the $5,500 level. This swing target would mean that Ethereum price has reached a new all-time high, making it a good time to start selling. If this level is recovered, the analyst then expects the start of another bearish movement.
Featured image of Dall.E, chart by Tradingview.com
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