20% drop or new rally for Ethereum (ETH) in the near term? Analysts weigh in

Summary

• eth has fallen 11% over the past month, with analysts warning of a potential further drop to $1,800 if key support levels fail.
• Others predict a possible rally, citing a “bear trap” pattern and historical trends.

More pain for eth bulls?

ethereum (eth) has been among the worst-performing cryptocurrencies (out of the top 10 list) lately, with its price dropping by 11%. on a monthly scaleIt has dropped 4% in the last 24 hours and at the moment It is trading at around $2,300 (according to data from CoiGecko).

A popular analyst who x.com/ali_charts/status/1835425549164138979″ target=”_blank” rel=”noopener” data-wpel-link=”external”>think x user Ali Martinez noted that eth’s decline could be far from over. He pointed to the $2,290-$2,360 range as a “key support” level, where 1.9 million addresses hold roughly $52.3 million in assets.

He crypto enthusiastic believe eth could fall 20% to $1,800 ought Its price dressing below that area. Recall that its valuation briefly dropped to $2,260 a few hours ago.

Certain on-chain metrics also eth” target=”_blank” rel=”noopener” data-wpel-link=”external”>suggest that ethereum could experience to further correction In the near future. An example is the “In the Money” indicator, which The daily drop was 0.19%. This shows the change in the number of eth investors who are currently in profit on paper. So far, 54% are in the green, while 39% are underwater.

The bullish scenario

Contrary to Ali Martinez's assumption, many other analysts are optimistic that eth is ready For a revival. User x Phoenix x.com/Phoenix_Ash3s/status/1835560473997045941″ target=”_blank” rel=”noopener” data-wpel-link=”external”>think The asset’s chart has formed a “bear trap,” indicating a possible resurgence in the coming months.

JAVON BRANDS x.com/JavonTM1/status/1835399545024307321″ target=”_blank” rel=”noopener” data-wpel-link=”external”>reclaimed that ethereum's pattern seems to have mirrored that of 2023, which caused a 165% price increase.

“2023 appears to have been the blueprint for another massive surge that may soon be happening in this cryptocurrency market. The target is at $4,723.5, and a break above can result in $8,100+ in play, projecting another surge close to double the price, if not much, much more,” the analyst argued.

Last but not least, eth’s RSI has been increasing recently. eth” target=”_blank” rel=”noopener” data-wpel-link=”external”>collapsed up to a bullish ratio of around 30. The Relative Strength Index (RSI) helps traders assess overbought or oversold conditions and therefore predict potential price reversals. Readings below 30 typically indicate that eth is oversold, which could be a precursor to a rally. On the contrary, a ratio above 70 could be interpreted as bad news for the bulls, as it may be followed by a correction.

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