In the world of cryptocurrency, altcoins like Ethereum (ETH) have been drawing attention recently. Many investors and analysts cannot agree on the future of this popular digital asset. However, a significant crypto analyst, Rekt Capital, warns that Ethereum is at a critical level and a drop below this level could be triggered.
Analyst Points to Potential Drop Below $3,000 for Ethereum
Rekt Capital, in his latest altcoin newsletter, considers the possibility that Ethereum could fall below $3,000 based on historical data. In particular, Ethereum’s failure to surpass the resistance level of $3,956 is causing concern for the analyst. Accordingly, the analyst points to past instances where Ethereum has experienced declines in similar situations.
The critical level highlighted by the analyst is around $3,342. If Ethereum fails to maintain this level, it could fall to as low as $2,700. However, if a strong support is established around $3,342, Ethereum could gain positive momentum in its next moves.
Could Ethereum’s Declines Indicate Upcoming Rises?
One of the interesting situations mentioned by the analyst is that a drop towards $2,000 for ETH could be beneficial for the cryptocurrency’s future. The analyst suggests that if the altcoin ETH drops to around $2,000, Ethereum will continue its long-term upward trend. According to him, if ETH reclaims a certain support level, a rise to the $4,000 levels could become inevitable. Even if this does not happen, it would not be incorrect to say that the long-term uptrend will continue.
So, what is the current situation of the cryptocurrency Ethereum? It is trading at $3,340, down more than 4% in the last 24 hours. However, this situation could be seen as part of the uptrend when viewed from a long-term perspective.
At this point, based on the analyst’s views, the short-term fluctuations of Ethereum, the leader of altcoins, could present significant opportunities for long-term investors. It is also worth noting that the price movement of Bitcoin will be decisive here.
Ethereum occasionally exhibits movements contrary to those of BTC, the flagship of cryptocurrencies. The next phase of movement for the altcoin ETH may not turn out as the analyst says because historical movements are not always a benchmark. The cryptocurrency Ethereum was trading at $3,406 at the time this article was written.
