Ethereum (ETH) has experienced a significant downturn, with a 17% decrease in value over the past month, trading below $1,850 recently. This has raised concerns among investors, with one analyst cautioning that the cryptocurrency could plummet to 17-month lows if it fails to regain crucial resistance levels.
Ethereum Could See Drop To $1,550
The current situation sees Ethereum struggling to surpass the $1,900 mark, trading between $1,750-$1,840 after losing a key support zone. Since early March, ETH has been on a downward trend, falling below $2,100 for the first time since December 2023. This performance has validated a double top formation within the $2,196-$3,904 Macro Range, signaling potential bearish outcomes.
As Ethereum hovers within a historical liquidity pool (between $1,640-$1,930), it risks a bearish retest of the range’s top, turning it into a new resistance level. Historically, failure to reclaim this level has resulted in a drop to the lower zone of the range. Reversing the top level into resistance could indicate a move towards the old Macro Range Low of $2,196. Conversely, a rejection from the $1,930 mark could lead to a 15% decline to $1,550.
Is A 20% Rally Coming?
Analysts are closely monitoring the $1,750 support and $2,100 resistance levels as crucial indicators of Ethereum’s future direction. Rekt Capital highlighted that Ethereum’s Dominance has decreased from 20% to 8% since June 2023, historically signaling a reversal point for the cryptocurrency. Reaching the $7.5%-8.25% range could potentially trigger a shift towards market dominance.
Analyst Sjuul from AltCryptoGems suggested a potential 20% rally for Ethereum based on a Power of 3 setup in the lower timeframe chart. The cryptocurrency has been consolidating between $1,840 and $2,100 levels, with indications of an upcoming distribution phase if it breaks out. At the time of writing, Ethereum is trading at $1,808, showing a 2.2% increase in the daily timeframe.
The cryptocurrency market remains volatile, and investors are advised to stay informed and cautious in their trading decisions. As Ethereum navigates through key resistance levels, its performance in the coming days will provide valuable insights into its future trajectory.
Featured Image from Unsplash.com, Chart from TradingView.com