This week has been a bad one for Bitcoin and altcoins. The market, which started the new week with a major decline, experienced a major decline yesterday.
BTC fell to $108,000, while Ethereum (ETH) fell to a two-month low of $3,900.
While investors expect these declines to be the final ones before the October bullish month known as Uptober, veteran crypto analyst Ted Pillows warned that ETH could fall even further.
Sharing his ETH analysis from his account X, the analyst argued that the decline in Ethereum could continue and that it could possibly drop to $3,500 before starting to recover.
The analyst, who stated that Ethereum’s current movements mirror Bitcoin’s 2020 cycle, which saw it drop 25-30% after rising above $20,000, claimed that ETH could also fall another 10-15%.
At this point, the analyst said that $3,800 is currently critical in determining Ethereum’s short-term direction.
Stating that $3,800 is an important support level, the analyst stated that if the $3,800 level holds, a new rally may begin in Ethereum.
On the other hand, if this level is not held, the ETH price may decline towards the $3,500 region.
“ETH has lost another key support level.
The next support level is around the $3,800 level, which is likely to be retested.
If Ethereum holds this level, a rally is possible.
Otherwise, ETH will drop to around $3,500 before bottoming.”
*This is not investment advice.