Top analyst’s Ethereum outlook after ETH falls below $3,000
Ethereum slid beneath $2,900 after buyers failed to defend the $3,000 support level over the weekend. The drop in Ether (ETH) price coincides with broad selling pressure across the crypto market, as Bitcoin (BTC) also slipped below $40,000.
At the time of reporting, Ethereum is trading around $2,860, down roughly 2.8% over the past 24 hours. Bitcoin has fallen to about $38,800, recording an approximate 2% decline.
Potential retest of $2,600 for Ethereum
Despite maintaining a generally bullish stance on the two largest cryptocurrencies by market capitalization, well-known trader and analyst Rekt Capital warns that Ethereum could dip to around $2,600.
The analyst noted that ETH has turned the roughly $3,050 level into new resistance on the weekly timeframe, and pointed to a multi-week downtrend in the price.
As a result, Rekt Capital says Ethereum now faces a greater chance of producing a long downside wick that could reach as low as $2,600 on the monthly chart.
Chart showing ETH/USD has dropped below a critical support level. Source: Rekt Capital
While Rekt Capital highlights the risk of a lower flip, he still sees a path for bulls to reclaim the $3,000 area.
Looking at the monthly timeframe, he suggests a volatile retest of roughly $3,000 could be underway. A downside wick into the green higher-low zone near $2,600 followed by a monthly candle close back above the $3,000 area would be a bullish signal.
The analyst’s chart illustrates these scenarios and outlines how price action could unfold for ETH/USD in the near term.
Earlier this month, Ethereum reached highs above $3,500. According to CoinGecko data, at current prices the ETH/USD pair is down nearly 11% over the past two weeks and about 8% over the past 30 days.