Ethereum, the second-largest cryptocurrency, is now dangerously close to dropping from its current valuation of $3,310 to $2,850. Renowned blockchain analyst Ali Martinez explains via a tweet what will prevent the 15% drop from happening.
ETH to Drop to $2,850
Like other prominent cryptocurrencies, ETH saw a sudden price drop overnight. The second-largest cryptocurrency tanked by over 7.19% within the past 24 hours. Other digital assets like BTC, SOL, and XRP plunged to $65,700, $180, and $0.58, respectively.
The analyst reveals that the crypto’s current price of $3,330 lacks a support level. This support level often comprises two similar prices where several investors have accumulated a significant quantity of that asset. With no support in its current price, ETH’s value may likely fall to $2,850 or lower.
#Ethereum dropping below $3,460 is a problem for the bulls! Given the lack of support, it increases the chances for a further $ETH correction toward $2,850 or lower. pic.twitter.com/dFpnpZtBVM
— Ali (@ali_charts) April 2, 2024
What Will Drive ETH’s Price?
ETH’s recent bull run came amid an overall bullish trend seen in the crypto market. Massive engagement with Ethereum-based memecoins like Dogecoin also fueled the coin’s price surge. Anticipation for the Dencun upgrade partly aided the bull run. After the upgrade occurred last month, no significant price movement was seen on ether’s value.
Records within the Bitcoin ETF market shows that an adoption of the Ethereum ETF product will spark a renewed price movement for ether. Although investment companies like Grayscale, BlackRock, Franklin Templeton, and others have applied for the ether-based ETF product, chances of approval remains slim.
According to the ETF expert Eric Balchunas, the Ethereum ETF has a 25% chance of seeing approval from the United States Securities and Exchange Commission (SEC). This pessimistic view came after the SEC classified ether as security. The financial watchdog implies that Ethereum creators ought to register the cryptocurrency under the agency, thereby subjecting the coin to the guidelines governing the securities market.
With a less likelihood of seeing approval soon, ETH’s value may remain around its current price range for a prolonged time.
