The second-largest cryptocurrency, Ethereum, is facing a critical phase as its price drops by 9% to $3,130. Analysts warn of a potential plunge to $2,700 if ETH fails to stay above $3,170, which could impact the broader cryptocurrency market.
Ethereum Price Faces Potential Downward Spiral, Analyst Warns
Amid the ongoing turbulence in the cryptocurrency market, Ethereum (ETH), the second-largest digital currency by market capitalization, has encountered a significant price drop. ETH has fallen by 9% over the past week, landing at approximately $3,130.
The critical phase has caught the attention of crypto analyst “Inspo Crypto,” who highlights that Ethereum’s current price track bears similarity to levels previously seen in early May. The immediate future of ETH hinges on the upcoming 8-hour trading period, which will be indicative of either a bullish recovery or continued bearish momentum.
If Ethereum’s price does not retest and stay above the $3,170 level, the analyst anticipates a potential plunge to $2,700. Such a decline could escalate liquidations and compound losses across the cryptocurrency market, impacting various altcoins as well.
However, if ETH can maintain its position above $3,170, the outlook changes. This scenario could signal an upward trend, potentially elevating the price towards $5,000 by the end of the year, and may even foreshadow a broader altcoin rally.
ETH is currently trading at $3,130, marking a 5% drop in the past 24 hours. According to “Inspo Crypto,” remaining above $3,170 is essential to fend off further depreciation and possibly set the stage for an enduring upward trend.
