Ethereum, like many altcoins, began the week in the red, experiencing a significant downtrend. The breach of its upward trendline added to the challenges, with the coin’s price showing resilience above the crucial $1600 support level. However, concerns have arisen as the price could potentially decline by 27% to $1,200, with another support at $1,366 likely to slow the fall.
Technical indicators are aligned with this bearish sentiment. The higher EMA 100 crossed beneath the lower EMA 50, a bearish signal. The daily chart further reveals a drop below $1,750 and the vital 200-day moving average at $1,800.
Analysts are expressing worries about ETH’s price trajectory, drawing parallels to a similar situation in 2019. A crypto analyst, Benjamin Cowen, highlighted the importance of a broken support line indicated by the Bull Market Support Band indicator. This scenario, reminiscent of four years ago, saw a 48% decline in ETH value over six months, followed by a gradual recovery.
Similarly, crypto analyst Ali Martinez foresees a significant drop if Ethereum falls below $1,550, projecting a 37% to 45% decrease to $1,000.
Despite the uncertainty, Ethereum’s outlook remains mixed. Vitalik Buterin’s transfer of $1 million worth of ETH to Coinbase and the Ethereum Investment Fund (ETF) may influence the market. The coin’s advanced mechanism system also holds potential. This leaves the market divided between bearish and bullish sentiments, while ETH is currently trading at $1,666.
