Ethereum (ETH) is trading 25% above the eight-month low of $2,112 reached on Aug. 5. Although the cryptocurrency continues its uptrend, analysts warn of possible downside risks.
Current ETH price dynamics
Over the last week, Ethereum's price gained 13%, reaching $2,651. However, analysts caution about potential further declines. Arete Capital partner McKenna wrote on Aug. 15, that they do not expect ETH to rise above $2,800-2,900 in the coming months.
Resistance at $2,800
McKenna noted that recent ETH price action was driven by dumping from market maker Jump Trading and fears of a global recession. Although the price recovered to $2,651, $2,800 remains a significant resistance level. He suggested that current price activity might be an important level for continued buying.
Deep fall scenario to $1,650
Another analyst, Peter Brandt, noted two possible scenarios for Ethereum's price: rising above $2,960 or falling to $1,650. He pointed out that technical analysis shows the possibility of continued downtrend. Independent trader John Morgan highlighted a decline in Ethereum’s funding rates, which also points to bearish market expectations.
In summary, while Ethereum's price has shown some improvement, the risks of further declines remain. Technical indicators and analysts' opinions suggest the possibility of a price drop to $1,650.
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