In the last few weeks, the Ethereum price has performed poorly, thanks to the bearish pressure triggered by the Bitcoin price decline. After losing support above $4,000, the second-largest cryptocurrency by market cap is now showing more signs of a breakdown 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 highlighted an important structure that the Ethereum price has formed recently, and that is a clear structure of recovery. This comes after the cryptocurrency completed a liquidity sweep around $3,700, which is referred to as a “Hunting.”
Now, with the liquidity sweep completed at this level, the analyst believes that this creates a potential base that could see the Ethereum price correct upwards. Amid this, the altcoin has also seen some consolidation between $3,700 and $3,800, making this range an important area of interest.
If bulls are able to claim and hold this level, then it could put Ethereum on the path of another uptrend. It would put an end to the accumulation trend and kickstart another bullish run. Such a run would send the Ethereum price into the next supply zone, which lies at $4,080-$4,180, before seeing any major downward correction.
Despite expecting the price to climb, the crypto analyst also highlights the fact that Ethereum is still flashing a bearish market structure. With the ascending trendline on the move, the price is expected to hit resistance around $4,100. If bears are able to successfully reject the price from this level, then the Ethereum price is expected to crash back below $4,000.
Analyst Calls The Top For Ethereum Price
While many in the space believe the current downtrend is only temporary, crypto analyst CRYPTO Damus believes that this could actually be the cycle top. In the post on X, he compares the current trend to that of the 2018 and 2021 cycle tops using the weekly chart.
Damus points out that there are similarities between the previous cycle tops and that the 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 deviations in the market cycles so far. However, if it is the same trend from the last two bull cycles, that would mean that the bull run is over for Ethereum, and investors should brace for a crash.
Featured image from Dall.E, chart from TradingView.com
