Is Ethereum’s recent price surge a mirage? One analyst thinks so, predicting a significant drop.
Warning Signs for Ethereum
According to crypto analyst Master Ananda, Ethereum’s price is showing some serious warning signs. After hitting a recent high near $2788, it’s now trading around $2605 and struggling to break through key resistance levels. Ananda’s analysis suggests Ethereum has peaked in the short term and a correction is underway.
The Predicted Crash
The analyst’s charts point to a potential price crash, with Ethereum possibly retracing to $2000 or even lower. This is based on several technical indicators, including bearish divergence (price going up, but momentum weakening) and a break below the 0.230 Fibonacci level.
Key support levels are identified at:
- $2280 (0.382 Fib)
- $2085 (0.5 Fib)
- $1900 (0.618 Fib) – This is considered the most significant support level.
While a drop to $1900-$1735 is seen as the most likely bottom, the analyst warns of a potential, more severe drop to $1385.
Trading Strategy: Buy the Dip?
Despite the bearish outlook, Master Ananda offers a strategy for navigating this potential downturn. He advises long-term holders to wait for the predicted drop and look for clear reversal signals before buying. The support zones around $1900 and $1736 are highlighted as potential entry points for long-term investments.
The analyst emphasizes the importance of careful planning and avoiding impulsive trades. While short-term traders might be tempted to short sell, Ananda believes the downside is limited, and the overall bullish trend for Ethereum remains intact. This potential crash could present a buying opportunity for those with a long-term perspective.
