Here’s Why ETH Might Plunge by 10%

TL;DR

• Despite a strong rally in the past hours, one analyst cautions that Ethereum may face a pullback if it fails to close above an essential level.
• Conversely, many other experts remain optimistic, forecasting a breakout toward $3,500 or even $5,000-$20,000.

Troubles Ahead?

Ethereum (ETH) has been among the best-performing cryptocurrencies (at least from the top 100 club) in the past 24 hours, with its price surging by over 7% and currently trading at just south of $2,700. 

However, some analysts have pointed out certain factors that suggest the rally might be replaced by a short-term correction. The popular X user Ali Martinez touched upon ETH’s latest price dynamics, suggesting that investors should turn bullish only after a sustained close above $2,750.

Moreover, he predicted that the valuation could plummet to $2,500 or even $2,380 (a 10% decline from the current rate) in case of a rejection. 

It is worth noting that several hours ago, ETH attempted to break above this mark. It managed to climb to as high as $2,720 before slightly retreating to its current level.

Ethereum’s Relative Strength Index (RSI) also signals potential problems for the bulls. The momentum oscillator measures the speed and magnitude of recent price changes to help traders spot probable trend reversals.

It ranges from 0 to 100, and ratios higher than 70 typically indicate that the asset may be overbought and poised for a pullback. Conversely, anything under 30 could be interpreted as a bullish element. As of this writing, the RSI stands at approximately 71.

The Bullish Perspective

Despite the pessimistic scenarios mentioned above, multiple analysts foresee further gains for the second-largest cryptocurrency. The X user, Michael van de Poppe, envisioned an ascent toward $3,400-$3,500 if ETH breaks the resistance at $2,800.

CRYPTOWZRD shared a similar thesis, assuming that a rise above that level could trigger a pump to as high as $3,550. “You’ll likely see a very quick bullish rally from Ethereum,” they added.

CryptoELITES and Gert van Lagen were even more optimistic. The former argued that the ETH-BTC pair is “looking very strong,” foreseeing a rise to $5,000. For his part, Gert van Lagen opined that ETH may be closer to the whopping target of $20,000 than most anticipate.