Ethereum (ETH) experienced a slight downturn on Wednesday, in tandem with a broader cryptocurrency market decline led by Bitcoin (BTC), which fell 7.59% over the past 24 hours to trade at $54,354 at the time of writing.
Earlier in the day, ETH, the second-largest cryptocurrency, dropped approximately 8%, briefly touching $2,300 before rebounding by noon. This volatility reflects growing investor caution amid rising interest rates and the upcoming U.S. elections.
That said, analysts remain divided on Ethereum’s future trajectory amidst this drop. Analyst Alan Santana, in a tweet, acknowledged Ethereum’s bullish potential but also highlighted the ongoing correction and the possibility of further price dips. Notably, the pundit pointed to the “weekly MACD” indicator showing a bearish divergence, potentially leading ETH to revisit its “new baseline” between $1,750 and $1,550.
Santana further expressed concern about the recent launch of Ethereum Spot ETFs, suggesting institutional investors might be looking to buy between $1,000 and $1,200, a level last seen in November 2022.
“I think the next target is the “new baseline,” but I am prepared for all scenarios just in case…This is how the markets work, they tend to produce sudden events that we never thought possible.” Wrote Santana.
However, he emphasized Ethereum’s intention to surge to a five-figure price tag following the correction following a test of this support zone.
“After the correction is over, we will have a new growth phase, and Ethereum can easily go above $10,000. We only have a few months left for the entire correction and bottom to settle. After this, we are back on the positive and we think solely about LONG, up and green.” He added.
Notably, other prominent analysts have echoed similar sentiments. Popular veteran market analyst Peter Brandt recently predicted a potential decline for Ethereum (ETH), identifying it as a “well-defined short-side trade.” In a tweet, the pundit pinpointed $2,830 as the critical support threshold of a rectangle pattern, suggesting that if prices breach this level, ETH could go lower.
Similarly, popular crypto analyst Benjamin Cowen cautioned investors on Tuesday about Ethereum’s risk metrics. He highlighted the importance of considering Bitcoin’s dominance when evaluating altcoins like Ethereum. Cowen argued that Ethereum has been “bleeding back to Bitcoin” over the past years, suggesting a potential long-term decline in its value relative to Bitcoin. It could potentially drop to $1,200 by year end before resuming a bullish move.
ETH traded at $2,288 at press time, reflecting a 2.71% surge over the past 24 hours. However, the trading volume of assets saw a 59.69% surge, settling at $15.71 billion over the same period.
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