Traders warn that the price of ETH could fall to $1,700, causing a “turbo nuke” in altcoins and changing the market structure of a struggling bull market.
The price of Bitcoin (BTC) and Ether (ETH) is still being hammered by the current wave of volatility, prompting traders to go back to the drawing board and rethink their short-term expectations. On February 17, Bitcoin briefly fell below $40,000, and Ether failed to hold support at $2,900, raising the prospect of a drop to $2,500.
According to data from various analysts, Ether was hit with a wave of selling after hovering near the $2,900 support level during the morning trading hours, dropping it to an intraday low of $2,752.
Here’s what analysts are saying about Ether’s price drop and whether or not more downside is expected as global tensions rise.
The next stop for Ethereum could be $1,700.
Crypto trader and pseudonymous Twitter user ‘Crypto Tony’ provided a general overview of the current outlook for Ether, posting the chart below that discusses the areas of support and resistance to keep an eye on.
“$3,900 remains the most pivotal area for me, and if we flip that, I believe the low has been reached… If you reject it or fail to meet it, we’ll move on to my main goal of $1,700.”
The price has reached a “super trend” resistance level.
Market analyst and pseudonymous Twitter user ‘IncomeSharks’ provided a more bullish assessment of Friday’s price action, posting the chart below, indicating that Ether has reached a significant resistance zone.
“Ether is right at the top of the supertrend resistance. Because it is flat, it has a higher chance of breaking upwards and turning bullish. If it does turn bullish, I believe $2,900 to $3,000 is next.”
The macro trend predicts further decline
Pentoshi, a trader and pseudonymous Twitter user, provided insight into what might happen to Ether and the broader altcoin market if it fails to maintain its current level.
“I’ll take note that there is local strength here because it has held its lows but has overall lower highs.” The trend is downward. *IF* those lows break, *MOST* altcoins will turbo-nuke.”
The total cryptocurrency market cap is now $1.899 trillion, with Bitcoin commanding 41.4 percent of the market.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.