Prominent crypto analyst shares his take on further direction that Ethereum price may take in near future
Crypto trader and analyst Ali Martinez, who often shares his predictions and crypto charts on Twitter (now X app) has tweeted that he expects the second largest cryptocurrency Ethereum to face a risk of a heavy price correction.
Ethereum is currently experiencing a price decline, feeling the impact of the leading crypto Bitcoin, which is also trading in the red after a significant price drop.
Ethereum may face dropping to $1,000, Martinez believes
Ali Martinez has tweeted to share a screenshot of an ETH/USD chart from the Coinbase exchange with what looks like an Ascending Triangle pattern. Usually, it signifies the continuation of an upward trend. However, sometimes, it can indicate an upcoming reverse of the price movement.
Martinez believes that should ETH slip under the $1,600-$1,550 level, this may create conditions for the further decline of the coin by a whopping 37%-45% correction with $1,000 as the main target.
— Ali (@ali_charts) August 21, 2023
Ethereum signals bearish trend
In an earlier tweet, Martinez also spoke of negative prospects for the Ethereum price in the near future. He tweeted that since the fundamentals of the network are still pretty weak, this signals a bearish trend coming.
In particular, the average amount of monthly active Ethereum wallets has dropped earlier than the yearly average. This shows small on-chain activity on the network. The analyst added that this is a typical sign of “weak network health and usage.”
#Ethereum network fundamentals are still lagging, signaling a bearish trend!
— Ali (@ali_charts) August 20, 2023
ETH trading sideways
Ethereum has been declining stably since Aug. 9, but for a week it declined slowly and gradually. However, since Aug. 17, it lost a whole 9.72%, dropping from $1,800 to the $1,625 low.
On the same day, ETH staged a recovery of 4.33% in a single green candle. Since then it has been trading in a range, with the resistance being the $1,694 level and the support staying at $1,664.
At the time of this writing, Ethereum is changing hands at $1,671.