Ethereum

ETH dips 6% as analyst says further pain awaits

4 days ago
Bitcoin Ethereum News
  • Ethereum (ETH) price has dropped below $2k, and could plummet further amid Bitcoin declines.
  • One analyst says a retest of $1,750 is possible.
  • Analysts also wonder if the Pectra upgrade will prove a catalyst or just another milestone.

Ethereum is down 6% in the past 24 hours, trading to near $1,900 after another rejection from a key resistance level.

With the broader market also in turbulence, a crypto analyst has shared a forecast that shows ETH faces further pain. Potentially, Bitcoin (BTC) wavering any further will see Ethereum price drop to levels seen in early March.

Ethereum price outlook

The broader cryptocurrency market is showing signs of strain. BTC is hovering near $85k and the global market cap is down to $2.86 trillion. Traders are nursing nearly $360 million in liquidations in the past 24 hours.

Amid this outlook, crypto analyst Carl Moon suggests fresh declines for Bitcoin will accelerate Ethereum’s downturn.

In a post on X shared with his 1.4 million followers, Carl Moon, points to Ethereum’s failure to break above $2,100 as a potential catalyst for new lows.

“So far, Ethereum hasn’t been able to overcome the resistance at $2,100, and now could be in serious trouble.,” he noted. “We have a high chance of retesting this wick if Bitcoin breaks down today.”

Moon’s chart accompanying the forecast, as shown above, highlights a potential retest of a previous price wick around $1,750. This means ETH could extend the pain from the $2.1k resistance line to 16%. Currently, the top altcoin’s value is down 23% in the past 30 days.

Will ETH drop to $1.7k?

Market conditions remain volatile and Moon notes that Bitcoin could hit $85k to close a CME gap. Notably, such a retreat will spell more trouble for Ethereum.

The analyst’s take aligns with other bearish catalysts for Ethereum. In the past several weeks, ETH has suffered selling pressure following the $1.4 billion Bybit hack. This remains the case, with Lookonchain highlighting on March 28 that hackers are likely still dumping ETH.

Don-chain data shows two new wallets potentially linked to hackers received 14,064 ETH from the crypto platforms THORChain and Chain Flip.The wallets proceeded to dump the ETH for 27.5 million DAI, offloading the altcoin at the average selling price of $1,956 per ETH.

If BTC falls to $8.5k or lower, ETH could lead the altcoin downside, with a potential drop to $1,750. Liquidity pools await here. However, any further weakness could see the top altcoin’s price dump to support levels seen in October 2023. This demand reload zone is around $1,550.

QCP analysts on ETH price

Over the past two weeks, Bitcoin spot ETFs have recorded significant inflows. On the contrary, Ethereum crypto investment products have seen outflows.  Analysts at QCP Capital say “the split highlights a growing divergence in institutional conviction.”

However, its not all gloom for Ethereum and the analysts see a potential catalyst hovering on the horizon for ETH bulls. They wrote in an update:

“Ethereum’s Pectra upgrade is now live on the Hoodi testnet, with a mainnet launch expected in Q2. Could this help reverse ETH’s underperformance vs. $BTC?” the analysts pondered?

The post ETH dips 6% as analyst says further pain awaits appeared first on CoinJournal.

Source: https://coinjournal.net/news/eth-dips-6-as-analyst-says-further-pain-awaits/