Crypto analyst Rekt Capital has drawn attention to the possibility of the Ether (ETH) price falling below the $3,000 level.
The crypto market has been facing a massive outflow of money over the past few days. Fed Chair Jerome Powell’s statements on interest rates and the strategic Bitcoin reserve led to a decline in the crypto market.
With these developments originating from the USA, Bitcoin (BTC) fell below the $ 100,000 level and fell to $ 93,000. One of the cryptocurrencies most affected by this decline was Ether (ETH); The price of ETH dropped from $ 3,894 to $ 3,183.
Although Rekt Capital stated that Ether could consolidate between $3,000 and $4,000, it stated that the probability of falling below the $3,000 level has increased after the declines in the last seven days.
Short-term expectations for Ether (ETH)
According to Rekt Capital, ETH is expected to continue to move between $3,000 and $4,000 in the short term as it struggles to hold above $4,000.
ETH rose to a high of $4,077 on December 6 but failed to sustain that level.
The analyst made the following statement in his market report on December 20:
“ETH continues to struggle with the $4k psychological resistance level.”
Rekt Capital noted that ETH touched the $3,000 level on November 9, and that this level currently serves as psychological support. According to the analyst, although ETH drops to $3,100 and sees a 10 percent recovery, the risk of a decline continues.
The analyst also said:
“It will be important to watch if ETH can make a bottom at this level.”
Rekt Capital said that ETH is in the process of forming an inverse head and shoulders pattern at current price levels, which could be a sign of a trend reversal. This pattern is being monitored along with the supply of ETH on exchanges and the inflows into spot ETH ETFs.
According to data from CryptoQuant, the ETH balance on exchanges has decreased by 10 percent compared to the same period last year.
