Ethereum Trading at 42-Month Low with Potential 60% Decline
Ethereum experienced a correction this week, losing over 5% and trading just above $2,500. Despite increased on-chain activity suggesting potential recovery, some analysts hold a bearish view.
Crypto analyst Peter Brandt forecasts a further decline for Ether, predicting a loss exceeding 60% from its current price without signs of reversal.
Currently, Ether is at a 42-month low, while Bitcoin recently tested the $70k mark. Ether's performance remains sluggish, significantly distant from the $4k target set by experts.
Ether’s Strong Bearish Movement
Ethereum's position at a 42-month low against Bitcoin indicates bearish momentum. Analyzing the price chart reveals a downward trend, presenting challenges for holders and investors. Brandt asserts that negative sentiment surrounding Ethereum will persist.
Interesting to note that there was not a buy signal in $ETH. In fact, chart remains bearish with unmet target at 1551 pic.twitter.com/sjkXyTQXU2
— Peter Brandt (@PeterLBrandt) October 31, 2024
In his post, Brandt shared a graph indicating no buying signal for Ether, highlighting a bearish chart with difficulty reaching the $1,551 target.
The 1-day chart illustrates ongoing bearish momentum since August, marked by a descending channel, signaling continued downtrend risks for traders and holders.
Analyst Sees Bearish Metrics For Ethereum
Brandt identified several worrying metrics for Ethereum. Ether's recent decline of over 5% outpaced Solana's drop of 4.91% and Bitcoin's decrease of 3.87%. Additionally, the ETH/BTC trading ratio has fallen to 0.03613, also a 42-month low, as Bitcoin continues to dominate the crypto market. Although Ethereum is currently valued at $2,507, Brandt anticipates a further drop to $1,551, representing a potential 62% decline.
$1,551 As Ethereum’s Unmet Target
Brandt views $1,551 as a critical milestone and the point of capitulation for holders. Recent price drops have shaken investor confidence, with Ethereum struggling to maintain the $2,400 support level.
As the second-largest cryptocurrency, Ethereum initially showed signs of a rally, with some predicting long-term targets of $6,000 and short-term estimates around $2,750. However, Brandt maintains a bearish outlook, stating that Ethereum's price will likely decline unless new technical indicators emerge.
Featured image from Tokpie, chart from TradingView