Ethereum Price Analysis: ETH Price Might Drop More Than 40% Plunging Below $1000

The post Ethereum Price Analysis: ETH Price Might Drop More Than 40% Plunging Below $1000 appeared first on Coinpedia Fintech News

Ethereum (ETH), the leading smart contract and DeFi ecosystem boasting a Total Value Locked (TVL) of over $22 billion, implemented the Shanghai upgrade to facilitate withdrawals of staked Ethers. However, this move has not been able to shake off the prevailing bearish sentiments that have persisted for the past four months. Despite multiple attempts, the price of Ether has struggled to surpass the resistance level of around $2,000, leaving investors in a state of uncertainty.

Ethereum Price Analysis

Prominent US-based crypto analyst, Ali Charts, presents a rather cautious outlook for Ethereum’s price in the upcoming months. Ali Charts suggests that Ethereum’s price might experience a further drop, potentially revisiting the lows observed last year. The analyst points out that if the Ethereum price falls below the critical range between $1,600 and $1,550 in the near future, it could trigger a substantial correction of 37% to 45%. As a result, the analyst has set a price target of approximately $1,000 for Ethereum.

Crypto Market Outlook

Benjamin Cowen, a well-known crypto analyst, has issued a stern warning to investors about the ‘buy the dip’ narrative, especially concerning altcoins. Cowen anticipates a continued bearish momentum for altcoins in the coming months. Additionally, Cowen highlights the historical tendency for both bullish and bearish trends to be disrupted during Bitcoin’s pre-halving years, as the industry works to stabilize itself after the effects of the bear market.

Despite these analyses, Ethereum’s recent performance remains lackluster. The cryptocurrency’s value has experienced a decline of around 12% in the past month, trading at approximately $1,670 during the early London market on Monday.

While Ethereum’s Shanghai upgrade aimed to bolster the ecosystem and enable withdrawals of staked Ethers, the prevailing bearish sentiments in the market have overshadowed its impact. The inability to breach the resistance level of $2,000 coupled with cautious predictions from notable analysts has left investors navigating uncertain waters.