Published on augustus 16, 2024, 12:33 am
Image source: Fox News
```json [ { "TLDR": "Analysts predict Ethereum's price may drop to $1,600 from its current $2,652 due to selling activities and economic concerns. Different experts suggest varying scenarios including consolidation or a bearish trend with caution advised for investors due to prevailing downside market conditions." } ] ```
Multiple analysts foresee that the price of Ethereum, a significant altcoin in the cryptocurrency market, could potentially reach new lows around $1,600. Currently, Ether is trading 25% higher than its recent eight-month low of $2,112 recorded on August 5th. Despite experiencing a 13% increase in value over the past week, experts suggest that there are still downward risks for Ethereum in the near future.
Arete Capital partner McKenna expressed skepticism regarding Ether’s ability to surpass the $2,800-2,900 range and instead anticipates it to remain within a consolidation phase throughout August and possibly into September. The recent downturn in Ether’s price was influenced by selling activities from market maker Jump Trading and concerns regarding a global economic downturn.
Peter Brandt, another prominent analyst, outlined two potential scenarios for Ether based on different chart patterns. One scenario involves Ether breaking above $2,960 before reversing course downwards. The other scenario envisions a breakdown leading Ethereum to drop towards $1,650 as part of a bearish trend.
Independent trader John Morgan highlighted a bearish shift in sentiment for Ethereum as funding rates turned negative after remaining positive since the beginning of 2024. Negative funding rates typically indicate more short positions prevailing over long positions in the market.
Although Ether has seen some recovery from its recent low of $2,116 to around $2,652 presently, technical analysis suggests caution. A bear flag formation on the daily chart indicates a potential continuation of the downtrend unless support at around $2,540 holds. Breaching this level could trigger a further decline towards $1,640 according to bearish projections.
With indicators like the relative strength index (RSI) hovering around 37 signaling prevailing market conditions favoring downside movement; investors and traders are advised to conduct thorough research before making any financial decisions as this article does not provide investment advice or recommendations. Cryptocurrency markets are known for their volatility and inherent risks that every individual should evaluate carefully before engaging in trading activities.
Original article posted by Fox News
