In recent weeks, the Ethereum price has performed poorly, thanks to the bearish pressure caused by Bitcoin’s price decline. After losing support above $4,000, the second-largest cryptocurrency by market cap is now showing more signs of a collapse that could trigger a spiral. Multiple analysts have already shared where they see the Ethereum price going, and we take a look at two that look at both ends of the spectrum.
A recovery and then a crash
Crypto analyst Melikatrader marked an important structure that the Ethereum price has recently formed, and that is a clear recovery structure. This comes after the cryptocurrency completed a liquidity clear around $3,700, which is called a ‘chase’.
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With liquidity analysis completed at this level, the analyst believes this creates a potential basis on which the Ethereum price corrects upwards. Amid this, the altcoin has also seen some consolidation between $3,700 and $3,800, making this range a key area of interest.
If bulls can claim and hold this level, it could put Ethereum on the path of a new uptrend. It would put an end to the accumulation trend and trigger a new bullish run. Such a run would send Ethereum price to the next supply zone, which is at $4,080-$4,180, before a major downward correction takes place.
Despite expecting the price to rise, the crypto analyst also highlights the fact that Ethereum still shows a bearish market structure. With the ascending trendline on the move, the price is expected to encounter resistance around $4,100. If bears can successfully reject the price from this level, the Ethereum price will expected to fall below $4,000.
Analyst Calls the Top for Ethereum Price
While many in the space believe the current downtrend is only temporary, says crypto analyst CRYPTO Damus believes that this could actually be the cycle top. In the post on X he compares the current trend with that of the 2018 and 2021 cycle tops using the weekly chart.
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Damus points out that there are similarities between the previous cycle tops and that Ethereum price is currently following a similar playbook. This comes after consistent green candles, followed by red candles on the weekly chart, ending in a bear market.
The analyst explains that it is possible that this time could be different, given the anomalies in market cycles so far. However, if it is the same trend as the last two bull cycles, that would mean that the bull run for Ethereum is over and investors should prepare for a crash.
Featured image of Dall.E, chart from TradingView.com