The cryptocurrency market has become a rapidly changing field that has attracted great attention in recent years. Those who invest in this market frequently shape their investment strategies by following the comments and predictions of expert analysts. In this context, Rekt Capital, one of the leading crypto analysts, made an important warning on the value of Ethereum (ETH).
According to Rekt Capital’s latest analysis, if ETH cannot maintain its current price levels, there is a possibility that there may be a serious decrease in its value. In the latest issue of the altcoin newsletter, the analyst claimed that Ethereum could fall below $3,000 based on historical data.
According to the analyst, the situation Ethereum is currently facing is quite complex. In particular, ETH’s inability to overcome the previously unbreakable resistance level of $3,956 makes the current situation more uncertain.
“Ethereum is in a complicated spot. Because as in the past (red circles below) the green was rejected at the $3,956 resistance.”
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Therefore, Rekt Capital believes that ETH should maintain a certain level. He predicts that if Ethereum cannot maintain the $3,342 level, there may be a drop to the $2,700 level.
“A weekly close below the orange box (around $3,342) would likely trigger a collapse, but consistent maintenance of the orange box as support could be enough to build momentum for the next bullish move.”
The analyst says that even if ETH falls to $ 2,000, he will continue to expect a long-term rise in the altcoin price.
“Whatever the scenario, ETH needs to reclaim this orange boxed area as support (blue circle) to ensure the continuation of the uptrend.
So whether ETH does this before a rally to around $4,000 or whether it has to drop to $2,700 before doing so doesn’t make much of a difference in the long run because the macro trend is bullish, but it does present opportunities for dollar-cost averaging in the short term.”
At the time of writing, the leading altcoin is trading at $3,340, down more than 4% in the last 24 hours.
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