Ethereum Faces Potential Plunge: Top Analyst Predicts $2,150 Drop If Support Breaks
Ethereum’s Bullish Momentum Stumbles, Raising Concerns of Further Decline
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Ethereum’s recent 15% decline from its recent high of $2,729 has left many investors and analysts questioning the future direction of the second-largest cryptocurrency. While many anticipated a continuation of the bullish trend, Ethereum’s struggle to maintain upward momentum has fueled anxieties.
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As concerns mount, some market observers predict a deeper decline, potentially reaching yearly lows around $2,150 if the current support level fails to hold. This has rekindled fear and uncertainty across the market as Ethereum’s price sends mixed signals.
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Crucial Support Line Under Pressure
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Ethereum is currently trading at a pivotal juncture that could determine its trajectory in the coming weeks. The next few days will be crucial for both Ethereum and the broader altcoin market as analysts closely monitor whether ETH can sustain its position as the second-largest cryptocurrency by market capitalization.
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Failing to hold above key support levels could signal a broader market downturn. Analysts and investors are eagerly awaiting an Ethereum recovery, hoping it can rebound from this crucial support line and launch a rally to new highs.
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Expert Warning: $2,150 Target Looms
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Renowned analyst Carl Runefelt recently shared his insights on X, highlighting the current trendline supporting ETH’s price. In his technical analysis, Runefelt warns that a significant price drop could occur if Ethereum fails to maintain this trendline. If the price breaches this support, he identifies $2,150 as the next potential target.
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A fall to these levels could shake out many investors who anticipate a bullish continuation in the coming weeks. If ETH loses this key support, it may lead to further uncertainty and heightened volatility, leaving market participants on edge while waiting for the next move.
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ETH’s Technical Indicators Raise Concerns
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Ethereum (ETH) is currently trading at $2,350 after failing to establish a higher high above $2,820. This recent price action has disappointed bulls as ETH has lost crucial support levels, including the 4-hour 200 exponential moving average (EMA) at $2,542 and the simple moving average (MA) at $2,466.
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These indicators are essential in determining short-term trends, and their loss as support has raised concerns about further downside risk. For the bulls to regain momentum, ETH must break above the 4-hour 200 EMA and the 4-hour MA and successfully hold these levels as support.
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Reclaiming these indicators would signal renewed strength and pave the way for another attempt to increase prices. However, a deeper correction is likely if Ethereum fails to recover these levels. Key support around $2,100 becomes the next target, with the potential for even lower prices.
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Investors are closely monitoring these levels as the coming days will be critical in determining whether ETH can recover or continue its downtrend.