The kaleidoscope of highs and lows in the crypto world is perhaps nowhere more striking than the turmoil that Ethereum, the second-largest cryptocurrency by market cap, is in. Surrounded by a fountain of red ink signaling the broader crypto market decline, Ethereum has been caught in the economic storm, succumbing to the relentless onslaught and dropping its value by 9% to a disappointing $3,130 in the past week.
Investors, crypto enthusiasts, and analysts are watching with collective bated breath, their focus glued to the strategic limits that Ethereum must hold tight to avoid a fairly catastrophic crash that would trigger a surge in massive losses and liquidations the likes of which have not been felt in a long time.
As the focus shifts to the trajectory of cryptocurrency values, a crypto expert who goes by the nickname “Inspo Crypto” pointed out an interesting detail: Ethereum’s value has fallen to figures reminiscent of early May.
Now the crystal ball is swinging toward a crucial eight-hour trading period marked by the daily candlestick, a looming milestone that represents a dramatic cliffhanger that could determine whether traditionally bullish investors wave the white flag or mount a comeback.
If Ethereum bounces back above the current price, it may be considered an anomaly in the bearish pattern. However, if Ethereum stumbles and fails to recover the lower limit of the trend channel at $3,170, it could fall further and drop to $2,700. This could send shock waves rippling through altcoins and cause massive losses across the board.
Surprisingly, if Ethereum does not succumb to pressure and establishes a strong position in the $3,170 region, the analyst expects a rise to reach the monumental level of $5,000. According to his insights, since October 2013, Ethereum has formed a new trend channel and is moving within it. However, it should be kept in mind that this trend will continue until the end of the year.
Ethereum's current stance within the long-term trend channel further supports this analysis. If Ethereum can sustain its current price within this channel, it could signal a recovery from the bearish cycle that lasted from August 2023 to February 2024 and could push for a staggering high of $8,000 in the coming months.
That said, it is important to note that this forecast does not incorporate external factors that are important in shaping the trajectory of Ethereum's price, such as geopolitical tensions or changes in monetary policy.
The analyst's acumen also suggests that the chances of a full-fledged altcoin revival look promising if Ethereum manages to rise above the $3,170 level.
Where Ethereum goes next will undoubtedly determine the pace of the broader cryptocurrency narrative, especially given the significant turmoil the altcoin market has experienced in recent days.
The price of Ethereum crashed on Thursday, according to the 1D chart. At the time of writing, Ethereum is hovering around the $3,130 level, a 5% drop in the past 24 hours. From here, it will be essential for Ethereum to break above the crucial $3,170 level to avoid further losses. This make-or-break moment for Ethereum will intensify in the coming hours.
