Price Analysis

Is Ethereum About to Take a Massive Drop? Here’s Why ETH Price Could Drop By 70%

The volatility has made its way into the markets with the selling pressure mounting over the crypto space. After a long fight, the bears are close to dragging the levels below the crucial support as the ETH price is trading in and out of $3000. With new bearish clouds looming over the markets, it will be more interesting to see whether the bulls can provide a solid foundation or the bears can squeeze profits!

Previously, it was believed that the ETH/BTC pair, which was gaining strength, was a clear indication of altcoins growing stronger than Bitcoin. However, a recent analysis suggests that the ETH price against USD or USDT drops heavily whenever the ETH/BTC pairs face rejection from the interim highs. Now that the ETH/BTC is falling under acute bearish pressure, will the ETH price recover from the recent losses?

A popular analyst, Benjamin Cowen, referring to both pairs, believes the descending trend could soon knock in the ETH price. 

The analyst refers to the weekly ETH price chart against the USD and compares the ETH/BTC’s variation. He marks the times when the ETH/BTC breaks down and indicates that the ETH price against USD encountered a 70% drop simultaneously. Now that the ETH/BTC has faced rejection, the analyst predicts a similar price action. He says,

“The last 2 times that ETH/BTC broke down, ETH/USD then dropped approximately 70%. In a world where everyone has been preaching Alt Season for the last 2.5 years into a BTC dominance uptrend, I thought I would remind people that there is still downside risk,”

With this, the analyst sheds light on the possibility of the altseason being differed as there is still more room for the price to go down, probably below $2000. If this happens, the Ethereum (ETH) price may offer a lifetime opportunity to accumulate as the 5-digit price target continues to prevail for the rally in the long term. 

Also Check Out : Ethena Token Jumps 18% This Week! Can ENA Price Reclaim $1?

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