An analyst in the world of cryptocurrency, CryptoKaleo, has predicted that Ethereum will experience a dip in its price in the short term, down to around $1,600 before rallying towards the $2,400 region. The analyst highlights certain events that have affected the price of ether, such as its rally from July to November 2021 when the price shot up to a maximum of $4,700. However, afterwards a downtrend set in, sending the price to as low as $1,600 before a steady consolidation.

To illustrate his position, the analyst created a chart reflecting Ethereum's price action from mid-2021 to present day. The trendline of the chart (dip and rise) suggested that Ethereum will now dip towards the pre-LUNA/UST liquidation breakdown level, around $1,600, before bouncing back up to retest the resistance of $2,400. Sure enough, at the time of writing Ethereum had broken below local support and was trading at $1,761. Subsequently, it would likely see further drops to the next support level of around $1,687.

The analyst went on to compare Ethereum's price behavior to that of bitcoin, expecting the cryptocurrency to dip to the $24,000 price region before rallying to test the $40,000 region.

Overall, investors should pay close attention to the actual bitcoin and Ethereum price movement during the short-term dip before the rally back up to the $2,400 level. As Ethereum’s price retests previous lows, it will be vital to remain patient and alert as it could present lucrative opportunities. While the price of Ethereum may temporarily dip, the potential strength and longevity of the cryptocurrency is what makes it a valuable asset in the cryptocurrency space.



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