Is Ethereum’s price drop finally coming to an end? One analyst thinks so.
A Bullish Prediction Against the Trend
While the overall crypto market is down, and Ethereum is currently stuck in a downtrend, a crypto analyst known as NotWojak sees a potential bullish reversal. They’ve identified two key price levels that could act as springboards for a significant price increase.
Key Supply Zones to Watch
The analyst points to two supply zones: $1425 and $1600. The $1425 level has already been passed, leaving the $1600 level as the main hurdle. If Ethereum can break through $1600, it could trigger a significant upward move. Even if the price dips further, the analyst believes support will hold above $1350.
Target Price and Breakout Potential
A successful breakout could send Ethereum’s price soaring. The analyst predicts a target price of $1835, a 20% increase from the current price. This is a bold prediction, considering the current market conditions.
On-Chain Data: A Mixed Bag
The picture isn’t entirely rosy. On-chain data reveals that only 32% of Ethereum investors are currently profitable. A whopping 65% are underwater, suggesting widespread losses.
Whale Activity and Selling Pressure
Large Ethereum transactions have increased significantly, indicating that whales (large investors) have been actively selling. This increased selling pressure could explain the recent price drop and might continue to exert downward pressure. The average transaction size has also increased, further suggesting significant movement of ETH.
Current Price and Conclusion
At the time of writing, Ethereum was trading around $1544, down slightly. While the analyst’s prediction is bullish, it’s important to remember that the crypto market is highly volatile, and this is just one analyst’s opinion. The increased whale activity and the large percentage of investors in the red paint a more cautious picture.
