Crypto Analyst Predicts Ethereum Could Drop to $900
Following the collapse of the Terra LUNA network in 2022, Ethereum experienced a significant drop in price. It fell to a new cycle low of $900 before recovering. However, with the altcoin still in a bear market, there are concerns about whether the price will return to its 2022 lows.
Analyzing Ethereum’s Price Trends
In an analysis shared on TradingView, crypto analyst FieryTrading presents a scenario where Ethereum could potentially fall back towards its 2022 lows. The analysis takes into account the multiple bullish trend lines that the digital asset’s price had broken through over the past year.
FieryTrading points out that there was one remaining bullish trend line that emerged on the chart during the June 2022 sell-offs. However, Ethereum has been unable to hold this trend line, which is over a year old and likely carries significant weight.
The analysis suggests that for confirmation of ETH’s price decline, we need to wait for it to break below the $1,510 level.
Historical Trends and Potential Scenario
Looking at historical trends in cryptocurrencies like Bitcoin and Ethereum, there tends to be a bearish stretch leading up to a halving event. After the event, this trend often reverses, signaling the start of a bull market.
Prior to the 2020 halving event, Ethereum experienced a sharp decline that brought its price down to around $120 before recovering. If history repeats itself, FieryTrading’s analysis for ETH dropping to $900 could come true.
Hot Take: Will Ethereum Revisit Its Lows?
According to FieryTrading’s analysis, there is a possibility that Ethereum’s price could drop to $900, revisiting its 2022 lows. However, this prediction still needs confirmation, particularly if the price breaks below the $1,510 level. It’s important to consider historical trends and the potential impact of halving events in the cryptocurrency market. While there are no guarantees, past patterns suggest that a bearish stretch followed by a reversal could lead to a new bull market. Keep an eye on Ethereum’s price movements and stay informed to make informed investment decisions.
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