Ethereum (ETH) experienced a sharp drop on Wednesday, echoing the broader cryptocurrency market’s downturn led by Bitcoin (BTC). Bitcoin fell 7.59% within 24 hours, trading at $54,354 at the time of writing. Ethereum, the second-largest cryptocurrency, also faced an 8% dip, briefly touching $2,300 before showing signs of recovery.
This drop reflects growing investor caution, influenced by rising interest rates and uncertainty surrounding the upcoming U.S. elections. As volatility continues, analysts remain divided on the future trajectory of Ethereum’s price.
Bearish Signals On The Horizon?
Crypto analyst Alan Santana voiced concern over Ethereum’s recent performance. In a tweet, Santana acknowledged Ethereum’s potential for long-term bullish growth but highlighted the ongoing price correction. He pointed to the weekly MACD (Moving Average Convergence Divergence) indicator showing a bearish divergence, which could signal further price drops. According to Santana, Ethereum may revisit a “new baseline” between $1,750 and $1,550, levels that could provide a support zone for future rebounds.
Adding to the bearish sentiment, Santana speculated that institutional investors might target Ethereum between $1,000 and $1,200, a level last seen in November 2022. Despite this cautious outlook, he remains optimistic about Ethereum’s long-term potential. Santana predicts Ethereum could soar to a five-figure price once the correction phase ends, believing that the market will shift toward positive momentum soon.
“After the correction is over, we will have a new growth phase, and Ethereum can easily go above $10,000,” Santana said. “We only have a few months left for the entire correction and bottom to settle.”
Other Analysts Weigh In
Santana’s cautious optimism is shared by other prominent market analysts. Veteran trader Peter Brandt recently warned of a potential decline for Ethereum, labeling it a “well-defined short-side trade.” In a tweet, Brandt pointed to $2,830 as a critical support level for Ethereum, suggesting that if ETH breaks below this level, further downward pressure is likely.
Similarly, crypto analyst Benjamin Cowen added to the conversation, warning investors about Ethereum’s risk metrics. Cowen emphasized the importance of Bitcoin dominance in evaluating altcoin performance, noting that Ethereum has been “bleeding back to Bitcoin” in recent years. Cowen predicted Ethereum could drop to $1,200 by the end of the year before resuming a bullish trend.
Also Read: Ethereum ETFs Plunge – -$5.98M Daily Net Outflow, ETHE Drops 6.02% As ETHA Gains $4.72M
Ethereum’s Current Performance
At press time, Ethereum was trading at $2,288, marking a 2.71% increase over the past 24 hours. Despite the recent volatility, Ethereum’s trading volume surged by 59.69%, reaching $15.71 billion during the same period. This uptick in volume could suggest increased interest in the asset, even amid short-term market corrections.
While Ethereum faces near-term challenges, its long-term outlook remains a topic of debate. Investors and analysts alike are watching closely for signs of stability or further drops as the cryptocurrency market navigates these turbulent times.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
