Ethereum, the second-largest cryptocurrency, is on the brink of a significant decline from its current value of $3,310 to $2,850, according to renowned blockchain analyst Ali Martinez. In a tweet, Martinez explains the factors that could prevent this 15% drop from occurring.
Similar to other prominent cryptocurrencies, Ethereum experienced a sudden drop in price overnight, with a decrease of over 7.19% in the past 24 hours. Other digital assets such as Bitcoin (BTC), Solana (SOL), and Ripple (XRP) also saw declines to $65,700, $180, and $0.58, respectively.
Martinez reveals that Ethereum’s current price of $3,330 lacks a support level. This support level typically consists of two similar prices where a significant number of investors have accumulated the asset. Without this support, Ethereum’s value is likely to fall to $2,850 or even lower.
The recent surge in Ethereum’s price was driven by the overall bullish trend in the crypto market. Additionally, the popularity of Ethereum-based memecoins like Dogecoin contributed to the price increase. The anticipation surrounding the Dencun upgrade also played a role in the bullish run. However, after the upgrade took place last month, there was no significant movement in Ethereum’s value.
The potential approval of an Ethereum ETF could reignite price movement for the cryptocurrency. Several investment companies, including Grayscale, BlackRock, and Franklin Templeton, have applied for an ether-based ETF product. However, the chances of approval remain slim. According to ETF expert Eric Balchunas, there is only a 25% chance of the Ethereum ETF being approved by the United States Securities and Exchange Commission (SEC). This pessimistic view is due to the SEC classifying Ethereum as a security and suggesting that its creators should register the cryptocurrency under the agency’s guidelines for the securities market.
Given the low probability of approval in the near future, Ethereum’s value is likely to remain within its current price range for an extended period.
Tags: Ethereum
