Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Ethereum (ETH) has experienced a significant price struggle in recent weeks, falling below the crucial $4,000 mark amidst broader bearish pressure in the crypto market, largely triggered by Bitcoin’s decline. As the second-largest cryptocurrency by market capitalization shows signs of a potential breakdown, analysts are offering diverging, yet predominantly bearish, forecasts for its immediate future.
Analyst Forecasts: Recovery vs. Cycle Top
Two prominent crypto analysts have shared their perspectives on Ethereum’s trajectory, presenting scenarios that range from a short-term recovery to the possibility of a definitive cycle top.
A Potential Bounce Before a Deeper Correction
Crypto analyst Melikatrader highlighted a recent recovery structure for Ethereum, noting a “Hunting” event—a liquidity sweep—around the $3,700 level. According to the analyst, this completed sweep could establish a base, potentially leading to an upward correction for ETH.
The analyst observed consolidation between $3,700 and $3,800, suggesting this range is a critical area of interest. Should bulls successfully maintain this level, Ethereum could initiate an uptrend toward the next supply zone, located between $4,080 and $4,180. However, Melikatrader also cautioned that Ethereum’s overall market structure remains bearish, anticipating resistance around $4,100. A rejection at this level could see the price crash back below $4,000.
Is This the Cycle Top?
In contrast to expectations of a temporary downturn, crypto analyst CRYPTO Damus suggested that the current trend for Ethereum might signify the cycle top. Comparing the present weekly chart to the 2018 and 2021 cycle peaks, Damus pointed out striking similarities.
The analyst noted a pattern of consistent green candles followed by red candles on the weekly chart, historically culminating in a bear market. While acknowledging that market cycles can deviate, Damus warned that if the current trend mirrors the previous two bull cycles, then Ethereum’s bull run could be over, signaling a significant crash for investors.
Key Takeaways
Ethereum finds itself at a critical juncture, with its price struggling below $4,000 and analysts presenting a mix of short-term recovery potential and long-term bearish warnings. While some see a possible bounce, others suggest the current downturn could signal the end of the bull cycle, urging investors to prepare for further volatility.
