As a researcher with years of experience in the cryptocurrency market, I’ve seen my fair share of market fluctuations and price volatility. The current struggle of Ethereum (ETH) is not unfamiliar territory for me or any seasoned crypto analyst.
As a researcher delving into the world of digital currencies, I’ve noticed that the price of Ethereum (ETH) has been experiencing turbulence, yet another instance of market volatility we’ve come to know too well. The second-largest cryptocurrency by market capitalization has dipped below the $2,600 support threshold for the third time within a week, leading me to ponder about potential price levels worth monitoring in the near future.
ETH’s Key Support Zone To Watch Out
Over the course of the crypto market’s cycle, there have been numerous dips, including Ethereum, which has experienced a 24% decrease since July 1, falling from its Q3 opening price and reaching below the $3,400 support level.
After dropping below $2,100 due to the ‘Black Monday’ crash, ETH has been fluctuating between approximately $2,300 and $2,700. The digital currency has managed to regain around 18% of its value as it attempts to retake the $2,600 threshold.
Despite the recent turbulence in the market, the value of Ethereum has tested its $2,500 support level on three occasions over the past fortnight, causing some analysts to question its future direction.
According to well-known crypto analyst Ali Martinez, it’s crucial for investors to keep an eye on a vital support level following Ethereum’s recent performance. For Martinez, the price points at $2,300 and $2,380 should be closely monitored if ETH shows signs of further decline.
Based on data from the IOMAP discussion by Martinez, approximately 1.62 million wallets have previously purchased around 50 million Ether at the current price range. This block of holders now serves as a potential support level for Ethereum’s price movement. If Ethereum fails to maintain this price level, there is a possibility that its value could decline to approximately $2,200, with potential drops even lower than that, last seen in February.
Will Ethereum Drop To $1,200 This Year?
Some industry professionals are predicting that the value of the second most prominent digital currency may further decrease, with the sentiment being “even the mighty can crumble.” Renowned analyst Benjamin Cowen expressed his opinion that the “ethereum-bitcoin ratio’s downfall” appears to be nearing its end.
About a year back, Cowen predicted that the downfall of the trading pair would signal the culmination of the altcoin price correction relative to Bitcoin. In simpler terms, he was indicating the significant decrease in the value of altcoins when compared to Bitcoin.
The analyst noted that the ETC/BTC pair may have been the final asset to increase during a bull market, and it could potentially be the final one to decrease during a bear market. In his opinion, this trading pair might not show signs of growth until four more months have passed in the upcoming year.
Furthermore, Cowen foresees that Ethereum’s price might reach around $1,200 by December, given its past performance patterns have been repeated.
Crypto investor Ted Pillows urged investors to hold on throughout the troubled waters, suggesting that a $10,000 is still possible. To the trader, the ‘King of altcoins’ is not dead based on different factors.
It’s been noted that investments into Ethereum exchange-traded funds (ETFs) are on the rise, whereas Grayscale’s outflows are decreasing. Moreover, Jump Trading holds approximately $60 million worth of Ethereum they could potentially sell.
As a crypto investor, I’m confidently maintaining my stance on ETH, as it continues to firmly uphold its critical support level. This key factor is instrumental in my belief that a significant consolidation breakout is imminent, potentially happening between November and December of this year. Following this, the much-anticipated parabolic growth phase is expected to commence in the first quarter of 2025.
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2024-08-17 07:16