Analyst Justin Bennett warns that failure of Ethereum price to hold this level could result in a sharp correction to $1,000 citing the crypto’s logarithmic channel pattern.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
With a nearly 20% drop over the last month, Ethereum price ETH $1 802 24h volatility: 1.0% Market cap: $217.44 B Vol. 24h: $10.52 B has been under severe selling pressure currently trading just above the crucial support level of $2,400. In the absence of any major catalyst, crypto market analyst Justin Bennet expects ETH to crash all the way to $1,000 levels.
Market analyst Justin Bennett shows a chart of the Ethereum price action within a long-term logarithmic channel that dates back to 2017. As we can see in the image below, ETH is currently testing the lower boundary of the narrow channel that has contained price movements since mid-2022.
Source: Justin Bennet
Despite reaching a high of $2,855.23 during the current two-week trading period, Ethereum has failed to maintain momentum above the crucial $2,800 level. Technical indicators suggest the cryptocurrency is at a critical support zone.
“Nearly a month later, and bulls haven’t been able to do anything at support,” Bennett stated, emphasizing the lack of upward momentum in ETH’s price action. Thus, he believes that if Ethereum price fails to hold this support, it could see a correction all the way to $1,000.
On the other hand, the Ethereum ETF outflows have also surged with the US ETFs recording four consecutive days of outflows. In the first two days of this week, more than $128 million have flown out of Ethereum ETFs with BlackRock’s ETHA seeing $48 million of outflows alone on Monday. This shows that amid the recent ETH underperformance, institutional interest has been on a decline.
Despite the continuous selling pressure and major headwinds, crypto market analysts continue to remain bullish about Ethereum price recovery moving ahead. Crypto analyst Wolf has weighed in on Ethereum’s recent price movements, noting that the cryptocurrency has returned to the lower end of its 13-month re-accumulation range.
“Despite all the noise, this still looks like a healthy, albeit boring, sideways accumulation,” Wolf stated, emphasizing the stability within Ethereum’s current trading range.
Source: Wolf
The analyst predicts that Ethereum could revisit the $4,000 mark in the second quarter of the year, adding that surpassing this level could signal the start of a new bull market for the asset.
Crypto analyst Ted Pillows has highlighted a significant development in Ethereum’s evolution, pointing to the SEC‘s acknowledgment of Grayscale’s proposal to incorporate staking into its spot Ethereum ETF.
“Ethereum staking is coming,” Pillows remarked, adding that institutional money could flow into the ecosystem “like crazy” once the integration is approved.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
