With the Ethereum price still trending below $4,000, bears are still in control of the cryptocurrency, making this an uncertain time. This decline below this major psychological level has no doubt caused turmoil for investors, and with no definite increase in price, it seems that the decline is destined to continue. This is also highlighted by a crypto analyst, who explained that the Ethereum price might be destined for more decline, with a possible crash of more than 20%.
In the analysis shared on the TradingView website, the analyst explains that it is more likely that the Ethereum price sees a decline before it sees another recovery. This comes as the price continues to weaken and the market capitulates in anticipation of when the next wave of action will begin.
There is expected to be a first small wave upward, that takes the price back toward the $2,400. However, this would only be temporary before the bears step in again and the selling continues. Once the uptrend is broken and the decline begins, it is expected to be swift as the selling takes off.
The analyst predicts that the Ethereum price would actually crash from above $4,100 and down to $3,000. In this case, it would mean an over 25% drop in the Ethereum price, breaking through multiple support levels, before finally finding its footing at $3,000.
Nevertheless, $3,000 remains the bounce-off point for where the Ethereum price is expected to make its climb again. Once this happens, then the crypto analyst sees the cryptocurrency actually making its way toward new all-time highs.
The Targets To Be Aware Of
Following the bounce from the $3,000 level, the analyst expects that the first target for the Ethereum price would be to reclaim the resistance at $4,000. It is the first point of interest for investors who would be looking to take profit.
Next is the $4,500 resistance level that has been a major point of pain in the past. Once the price crosses this level, then more profit-taking is advised, especially as the bears are expected to start making a bigger play for more impact.
Lastly, the major target lies at the $5,500 level. This swing target would mean that the Ethereum price has made a new all-time high, making it a good time to actually start selling. If this level is reclaimed, then the analyst expects the start of another bearish move.
Featured image from Dall.E, chart from Tradingview.com
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