Ethereum (ETH) price is struggling amid another market turmoil. The second-largest cryptocurrency by market capitalization fell below the $2,600 support area for the third time in the past week, prompting crypto analysts to evaluate the next levels.
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Key support areas to watch out for for ETH
The crypto market has seen multiple pullbacks throughout the cycle, with cryptocurrencies like Ethereum falling significantly from their third quarter highs. Since July 1, the “king of altcoins” has seen a 24% drop from the $3,400 support level.
After dropping below the $2,100 mark during the ‘Black Monday’ crash, ETH has been hovering between the $2,300 and $2,700 range. The cryptocurrency has regained about 18% of its price while it is trying to reclaim the $2,600 level.
Nevertheless, recent market volatility has seen the price retest the strong $2,500 support area three times in the past two weeks, leaving experts concerned about ETH’s next move.
Renowned crypto analyst Ali Martinez said that investors should pay attention to a key support area following Ethereum’s performance. According to Martinez, if ETH continues to decline, the $2,300 and $2,380 price ranges should be watched.
According to the In/Out of the Money Around Price (IOMAP) chat shared by Martinez, 1.62 million addresses bought more than 50 million ETH in this area, making it the next wall of support for Ethereum’s price. If the cryptocurrency fails to hold this level, its price could drop to $2,200 or even to levels not seen since February.
Will Ethereum drop to $1,200 this year?
Other experts have suggested that the price of the second-largest cryptocurrency could fall even lower, as “even giants fall.” Top analyst Benjamin Cowen said that the “collapse of ETH/BTC” is almost complete.
A year ago, Cowen predicted that the collapse of the trading pair would “mark the end of the altcoin reckoning.” He explained that the “altcoin reckoning” means the devaluation of altcoins on their BTC pairs.
The analyst said that ETC/BTC is “the last trading pair to top out in a bull market and it may also be the last to bottom out in a bear market.” According to him, this trading pair has four more months before it can move higher next year.
Additionally, Cowen Predicted If its performance remains similar to the previous two cycles, the Ethereum price could reach the $1,200 price level in December.
Crypto investor Ted Pillows urged investors to remain patient even during times of crisis. suggest that $10,000 is still possible. For the trader, the ‘king of altcoins’ is not dead based on various factors.
Ted highlighted that inflows into spot Ethereum exchange-traded funds (ETFs) have increased while outflows to Grayscale have slowly decreased, and Jump Trading only has about $60 million worth of ETH to sell.
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Furthermore, ETH is “strongly holding its support level,” which he considered the most important factor. Ultimately, the investor predicts that the consolidation breakout will happen between November and December, while the “parabolic run” will begin in Q1 2025.
Featured image from Unsplash.com, chart from TradingView.com
