Analyst Predicts ETH to Gain 13%, Here’s Why
The price of Ethereum, the world’s second-largest cryptocurrency by market cap, saw a sharp decline today amid a widespread selloff in the crypto market. Meanwhile, this decline came after stronger-than-expected US employment data weakened investors’ confidence due to the Fed’s hawkish stance.
However, despite the decline, some analysts are optimistic about Ethereum’s potential for a significant recovery.
Analyst Predicts a 13% Increase in Ethereum Price
Despite Ethereum’s recent price decline, a well-known crypto market analyst on the X platform known as Mags (@thescalpingpro) expects a strong recovery. In a recent X post, Mags compared the current Ethereum price trend to historical patterns and suggested that the cryptocurrency could experience a significant rise soon. According to Mags, Ethereum is “forming a similar structure” to the previous cycle, after which the cryptocurrency rose 13%.
In particular, Mags’ analysis shows that Ethereum could rise as high as $4,200 if the predicted trend is correct. Currently, Ethereum is trading around $3,700 and this potential upside would represent a 13% increase. This optimistic forecast is based on Ethereum’s historical performance, where similar patterns have led to significant gains.
Meanwhile, supporting this view, Mags shared a price chart showing Ethereum’s current structure and highlighting similarities with past cycles. The comparison shows that the recent decline could be a harbinger of a strong upward move, similar to previous examples where Ethereum recovered significantly after a similar setup.
Also Read: Ethereum Foundation Wallet Deposited $56 Million ETH on Kraken, Will ETH Price Drop Soon?
Price by Comparative Views
Although Mags offers a bullish outlook, not all experts share the same optimism. A recent report from 10X Research took a more cautious view. According to their analysis, Ethereum broke the critical support level of $3,725. This breach raised concerns about potential ETH liquidations.
The 10X Research report highlights the risk of Ethereum being liquidated soon after falling below the key support level. Supporting this view, CoinGlass data shows that Ethereum has experienced significant liquidations in the last 24 hours.
Specifically, $59.61 million worth of Ethereum was liquidated, with $52.23 million in long positions and $7.37 million in short positions. This data underscores the volatility of the market and the potential risks associated with Ethereum’s current price level.
But despite this, optimism prevails, with increasing optimism towards the US Spot Ethereum ETF. Additionally, some market experts believe that the recent decline in ETH price may provide a buying opportunity for investors.
As of the time of writing, the Ethereum price decreased by 3.21% to $ 3,683.75, while the transaction volume in the last 24 hours increased by 40.27% to $ 18.08 billion. Meanwhile, Ethereum Open Interest fell 0.95% to $16.54 billion, reflecting the current gloomy mood in the market.
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A seasoned professional with 3 years of experience in the financial market, Rupam has honed his skills as a meticulous research analyst and insightful journalist. She enjoys exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond traditional boundaries. His contributions include breaking news, examining AI-related developments, providing real-time crypto market updates, and providing insightful economic news. Rupam’s journey is marked by his passion to demystify the intricacies of finance and deliver impactful stories that will resonate with diverse audiences.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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