Despite Ethereum’s price appearing to level below $2,000, the slowdown in the crash has done nothing to allay fears that more declines are on the way. In fact, analysts believe that this halt is only temporary and that the second-largest cryptocurrency by market capitalization will soon experience another major decline. This is due to past performance, where Ethereum price has often undergone a major reset before eventually reaching a potential bottom.
The scenario that says the price of Ethereum is heading towards $600
The calls for an Ethereum value of $10,000-$15,000 were loud over the past year, when the market was still in the grip of the bull market. However, that hope has since faded: even $5,000 now seems like a dream. Yet analysts like Alexhiz on the TradingView website believe that the dream has not completely disappeared path to this goal can be quite rocky.
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In a recent one afterthe crypto analyst explains that this is likely Ethereum will make a major macro correction. If this is true, it means that the support the altcoin appears to have built above $1,900 is fragile at best and could break soon.
The bearish scenario Alex points out is another 60% price drop, which would ultimately push Ethereum’s price to $600. While such a price level could be disastrous in the short term, the analyst believes it is necessary for the five-figure scenario to become a reality.
Why a crash is good
If the Ethereum price were to drop to $600, the crypto analyst believes it would mean a complete liquidity reset and a complete market capitulation. Such a scenario would allow for strong long-term accumulation, with stronger hands taking control of the price.
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What would follow the accumulation phase would be an expansion phase, during which the price could rise rapidly. The analyst added: “Looking further ahead (2028-2029), in a renewed bullish cycle, ETH could target the $10,000-15,000 range based on historical cycle behavior and liquidity growth.”
Given this, it would take years for such a scenario to play out, as there could be a long, drawn-out accumulation trend like we saw in the last cycle. The growth could also be highly dependent on Bitcoin’s price performance, as Bitcoin has been the market leader for more than a decade.
Featured image of Dall.E, chart from TradingView.com