Crypto analyst Rekt Capital said the price of Ether (ETH) could fall below $3,000.
The crypto market has seen a massive outflow of money over the past few days. Fed Chairman Jerome Powell’s statements on interest rates and the strategic bitcoin reserve caused the crypto market, especially BTC, to decline.
BTC, which fell below $100,000 due to the influence of the United States, dropped to $93,000 with a big drop. One of the cryptocurrencies most affected by this decline was Ether (ETH). The price of ETH dropped from $3,894 to $3,183.
ETH may stabilize between $3,000 and $4,000, but is likely to fall below $3,000 after the last seven days’ decline, analyst Racket Capital said.
What to expect from Ether (ETH)?
According to Rekt Capital, the price of Ether (ETH) may remain between two key levels in the near term as it struggles to hold above $4,000.
ETH failed to hold the aforementioned level after reaching a peak of $4,077 on December 6.
The analyst made the following statements in his market report published on December 20:
“ETH Continues to Struggle with Psychological Resistance at $4,000.”
$3,000, a level that ETH last touched on November 9, has become psychological support, Rekt Capital said. According to the analyst, downside risk remains for ETH, although it has recovered 10 percent after falling to $3,100.
The analyst noted the following;
“It’s worth watching to see if ETH can make a bottom in and around this zone.”
The analyst reported that ETH is forming an upside head and shoulders at current levels, indicating a trend reversal. Formation, which means redemption, is followed by an influx of ETH supplies on exchanges and an increasing amount of spot ETH ETFs.
According to data from CryptoQuant, ETH balances on exchanges have decreased by 10% compared to last year.
This article does not contain investment advice or recommendations. Every investment and trading venture involves risk, and readers should do their own research when making decisions.
