The recent price action of Ethereum is raising red flags among analysts, with technical indicators suggesting a potential crash to the $2,000 level. Following a significant uptick that coincided with Bitcoin’s price surge, concerns are mounting that a deeper correction may be developing.
Ethereum Price Crash To $2,000 Imminent
According to a new report by Master Ananda, a TradingView crypto analyst, the Ethereum market is signaling warning signs as its price struggles below a critical resistance zone. As of the latest update, Ethereum is trading at approximately $2,605, having faced rejection from a local high of around $2,788.
Master Ananda’s analysis suggests that Ethereum likely completed a short-term top, indicating that a corrective move is in play. Expectations lean towards a looming price crash, with forecasts hinting at a retracement toward the $2,000 level or lower before a potential bullish impulse emerges.
The analyst’s bearish continuation thesis appears to hold strong potential, as Ethereum is expected to revisit lower Fibonacci retracement levels. Of particular note is the developing subtle bearish divergence: while the price edged higher in May, momentum was waning. This divergence has created a rising resistance line as volume and price action failed to validate new highs.
Ethereum’s price has now broken below the 0.230 Fibonacci level, indicating the possible onset of a broader correction phase. Likely support areas are projected at $2,280 (0.382 Fib), $2,085 (0.5 Fib), and significantly at $1,900, marking the 0.618 Fib Retracement level.
The highlighted green zones on Master Ananda’s chart represent potential support and buying areas, indicating the $1,900 to $1,735 (0.618-0.786 Fib) range as the most likely zone to form a higher low. The expectation is that this correction will conclude above the preceding major low from April 7. Until then, a short-term correction is considered the most probable scenario, necessitating caution from traders as indications of a more profound decline to $1,385 may emerge.
ETH Trade Strategy: Buy The Dip And Go Long
In light of the bearish perspective presented, Master Ananda outlines a clear strategy for investors and traders. He advises long-term holders to remain patient, monitor the projected drop, and evaluate support reactions before looking for definitive reversal signals.
Targeting support zones, such as $1,900 or even as low as $1,736, could offer optimal entry points for long-term positions. Although some bears may seek to short the market, Master Ananda contends that the downside potential is limited.
The emphasis lies on careful planning and avoiding impulsive trading decisions through the establishment of ideal entry and exit points while adhering to the prevailing market trend. With Ethereum’s bullish outlook still intact, the anticipated price crash may present an opportunity for numerous traders rather than a mere threat.
