As the Ethereum price continues to trend below $4,000, the bears are still in control of the cryptocurrency, making this an uncertain time. The drop below this key psychological level has undoubtedly caused turmoil for investors, and with no definite increase in price, the decline looks set to continue. This was also highlighted by a cryptocurrency analyst, who explained that the price of Ethereum could be headed for a further decline, with a collapse of more than 20% possible.
In the analysis shared on TradingView, the analyst said He explains It is likely that the price of Ethereum will see a decline before witnessing another recovery. This comes as the price continues to weaken and the market capitulates in anticipation of when the next wave of movement will begin.
A first small upward wave is expected, which will bring the price back to the $2,400 level. However, this will 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 a quick sell-off.
The analyst predicts that the price of Ethereum will actually collapse from over $4,100 to $3,000. In this case, it would mean a more than 25% drop in the price of Ethereum, breaking through multiple support levels, before finally finding its footing at $3,000.
However, the $3,000 level remains the rebound point where Ethereum price is expected to rise again. Once this happens, the cryptocurrency analyst sees the cryptocurrency actually making its way towards new all-time highs.
Goals you should be aware of
After the bounce from the $3,000 level, the analyst predicts that the first target for Ethereum price will be to reclaim the resistance at $4,000. It is the first point of interest for investors looking to make profits.
Next is the $4,500 resistance level which has been a major pain point in the past. Once the price crosses this level, further profit taking is recommended, especially as the bears are expected to start making larger trades for greater impact.
Finally, the main target is at the $5,500 level. This swing target will mean that the price of Ethereum has reached a new all-time high, making it a good time to actually start selling. If this level is restored, the analyst expects the beginning of another downward movement.
Featured image from Dall.E, chart from Tradingview.com
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