Analysts Share Forecasts As Ethereum Price Struggles Below $4,000, And It’s Very Bearish
Analysts Share Forecasts As Ethereum Price Struggles Below $4,000, And It’s Very Bearish
Ethereum's price has been struggling below $4,000 due to prevailing bearish pressure, exacerbated by Bitcoin's recent decline. Analysts offer conflicting views, with some predicting a potential short-term recovery to $4,080-$4,180 before another significant downturn, while others suggest the current downtrend could mark a cycle top, mirroring past bear market indicators. The overall outlook remains predominantly bearish, with strong warnings of a potential crash for the altcoin.
Ethereum Price Struggles Below $4,000 Amid Bearish Pressure
In recent weeks, the Ethereum price has shown poor performance, primarily influenced by bearish pressure originating from Bitcoin's price decline. Having lost crucial support above $4,000, the second-largest cryptocurrency by market cap is now displaying further signs of a breakdown that could trigger a deeper spiral.
Conflicting Analyst Forecasts
Analysts are presenting varied forecasts for Ethereum. Crypto analyst Melikatrader highlighted a recent recovery structure after a liquidity sweep around $3,700, potentially forming a base for an upward correction. This could lead Ethereum into a supply zone between $4,080-$4,180, signaling a temporary bullish run.
However, despite this potential short-term climb, the analyst notes Ethereum's market structure remains bearish. Resistance is anticipated around $4,100, and a rejection at this level could see the price crash back below $4,000.
Potential Cycle Top for Ethereum
Conversely, crypto analyst CRYPTO Damus suggests that the current downtrend might signify a cycle top for Ethereum. Comparing the present trend to the 2018 and 2021 cycle tops on the weekly chart, Damus points out striking similarities in price action – consistent green candles followed by red candles, often preceding a bear market. While acknowledging potential deviations in market cycles, if this pattern holds, it indicates the end of the bull run for Ethereum, urging investors to prepare for a significant crash.