ethereum price has been closing mirroring bitcoin's performance recently and since bitcoin price has been in a downtrend, eth price has followed. However, ethereum alone appears to possess more bearish fundamentals compared to bitcoin, leading crypto analysts to believe that the second-largest cryptocurrency by market capitalization will fall even further from now on.
ethereum about to crash even more
A crypto analyst known as Shin Forex visited the TradingView website to ethereum-drop-toward-2500-level/”>share an interesting analysis of the price of ethereum. The analysis, which focused on the eth/btc chart, revealed some worrying developments in the price of eth.
The analyst explained that during this time, liquidity in ethereum has been decreasing. Instead of flowing into altcoins like eth, it is flowing into bitcoin. This suggests growing disinterest in ethereum from investors and as liquidity flows into bitcoin, ethereum has nothing to support it at the moment.
Furthermore, the crypto analyst explains that the eth/btc pair has now broken below its 0.05 support. Now, this drop below its support level is important given what happened each time it broke. Shin Forex dates back to the last two market cycles, one in 2016 and another in 2019, in which eth/btc broke below its support.
Both times this happened, a drop in price occurred, before it could recover again. The crypto analyst does not expect this time to be different and believes that eth/btc will fall below 0.04. If this happens, it will cause ethereum to skyrocket and the analyst has set a price target of around $2,500 for this.
Can eth Price Survive the Crash?
In the short term, ethereum price is not looking very good, especially as the altcoin is currently trending lower within its current channel, according to the crypto analyst. However, zooming out to the broader time frame can help give insight into how the eth price might behave after the drop.
Looking at the Shin Forex chart of the last two times a formation like this occurred, it has also set a precedent for money to flow back into ethereum. In November 2016, the price crashed, but within a few months there was a massive recovery as eth/btc rose to a new all-time high.
<img decoding="async" class="alignnone size-medium wp-image-607185 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/05/Crypto-Analyst-Says-Ethereum-Price-Will-Fall-to-2500-Here39s.png" alt="ethereum” width=”460″ height=”236″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/05/Ethereum_377d7d.png?w=2854 2854w, https://technicalterrence.com/wp-content/uploads/2024/05/Crypto-Analyst-Says-Ethereum-Price-Will-Fall-to-2500-Here39s.png 460w, https://www.newsbtc.com/wp-content/uploads/2024/05/Ethereum_377d7d.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/05/Ethereum_377d7d.png?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/05/Ethereum_377d7d.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/05/Ethereum_377d7d.png?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/05/Ethereum_377d7d.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/05/Ethereum_377d7d.png?w=1140 1140w” sizes=”(max-width: 460px) 100vw, 460px” loading=”lazy” data-recalc-dims=”1″/>
Source: TradingView.com
Something similar happened the next time in 2019, when the decline occurred before a market rally, albeit a little slower at this time. So if this trend continues, then the fall of eth is inevitable. However, a recovery is expected that will likely fuel the start of another massive rally.
For now, the bears continue to dominate the ethereum market and have managed to drag the price below $3,000. It is quoted in. $2,975 at the time of writing, with a small drop of 0.36% in the last day, according to Coinmarketcap.
x/8UjQn4mf/” alt=”ethereum price chart from Tradingview.com” width=”3286″ height=”1576″ loading=”lazy”/>
eth price falls below $3,000 | Source: ETHUSD on Tradingview.com
Featured image from Quora, chart from Tradingview.com
