Ethereum Faces Potential Collapse as Key Level Fails to Hold, Warns Analyst
A well-known crypto analyst is sounding the alarm on Ethereum (ETH), predicting that the digital currency could experience a significant decline if it fails to maintain a crucial support level. In the latest edition of his altcoin newsletter, the trader known as Rekt Capital warns that Ethereum could dip below $3,000 based on historical patterns. He emphasizes that ETH needs to hold the level around $3,342, or it risks dropping even further to the $2,700 range.
Key Support Level at Risk
Rekt Capital highlights that Ethereum is currently in a precarious position due to its rejection from the $3,956 resistance level. This rejection has occurred in the past as well. The trader believes that if ETH fails to maintain the support level around $3,342, it could trigger a breakdown in price. On the other hand, if Ethereum can consistently hold above this support level, it would build momentum for an upward move.
- Rejection from $3,956 resistance level puts Ethereum in a complicated spot
- Historical patterns indicate potential dip below $3,000
- ETH must hold around $3,342 to avoid triggering a breakdown
- A weekly close below the support level would likely lead to further decline
- Consistent holding of support level would pave the way for an uptrend continuation
The trader acknowledges that even if Ethereum experiences a dip into the $2,000 range, he remains bullish on its long-term prospects. Reclaiming and maintaining the orange boxed area as support would be crucial for sustaining an upward trend. Whether ETH achieves this now or after dropping to the $2,700 range is less significant in the grand scheme of things. The overall macro uptrend remains bullish, and any short-term dips could present dollar-cost-averaging opportunities for investors.
Ethereum’s Current Price
At the time of writing, Ethereum is trading at $3,340, representing a decrease of over 4% in the past 24 hours.
Hot Take: Ethereum at a Crossroads
Ethereum’s recent performance has placed it in a critical position. The failure to hold the key support level around $3,342 could lead to a significant collapse in value. While historical patterns suggest a potential dip below $3,000, the long-term outlook for Ethereum remains positive. Reclaiming and maintaining the support level is crucial for an upward continuation of the trend. Investors should monitor Ethereum’s performance closely as it navigates this crucial juncture.
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