According to a Twitter post published by cryptocurrency researcher Ali Charts, the largest altcoin, Ethereum (ETH), may be seeing a significant price fall soon. In the post, he forecasted that if the price of ETH falls below $1,600-$1,550, it will have a 37%-45% correction, causing the price of ETH to fall under $1,000.
In the short term, ETH was insulated from the severe decline because its price was above the $1,600 mark. According to CoinMarketCap, the value of ETH increased by 0.49% in the recent 24 hours. As a result, ETH was trading at around $1,671.61 at press time, which was just above its day-by-day low of $1,663.98.
Meanwhile, the buying and selling volume for ETH has dropped by more than 13% in the preceding 24 hours. This resulted in a daily buying and selling volume of approximately $4,056,144,448. While ETH had a daily value increase, the altcoin still had some work to do to recover from its dismal weekly efficiency, which remained at -9.58%.
According to the daily chart for ETH/USDT, the cryptocurrency’s value dropped as low as $1,550 on Thursday. Nonetheless, bulls were able to resurrect the altcoin’s value, which closed the day’s trading session at $1,681.49. Since then, the value of ETH has gradually increased.
As a result, at press time, ETH‘s value was on the verge of breaching the $1,685 barrier level. If ETH’s price breaks through this barrier, it will have a relatively easy route to the next major resistance level at $1,775 within the next week. Continued purchasing assistance may also result in ETH’s price climbing to $1,915 in the next weeks.
However, if ETH fails to close a daily candle above $1,685 in the coming 48 hours, it may fall back to the aforementioned $1,550 value level once more. Given that the 9-day EMA line is below the 20-day EMA line, the bearish thesis appears to be more likely to be realised.
Furthermore, all of these technical indicators are below the 50-day EMA line. This indicated that short-term and medium-term momentum favoured sellers at the time of publication.