The recent price drop of Ethereum (ETH) has raised concerns among investors. However, some analysts forecast a significant possibility of growth.
Price Drop and Analyst Opinions
Ethereum recently dropped by 6% from last week's high of $2,608. Some investors begin to panic, questioning whether this is the start of a larger sell-off. However, insights from popular crypto analysts like Ali Martinez suggest otherwise.
Factors Supporting Optimism
Key factors for optimism, according to Ali, are two main indicators: the return of the MVRV ratio to a bullish trend and the increased activity of whales. Whales added over 450,000 ETH to their wallets in the past month, indicating their anticipation of price growth. Additionally, the amount of ETH on exchanges has decreased by nearly one million since April, which also hints at reduced selling pressure.
Key Levels and Expected Targets
Currently, Ethereum is trading around $2,383, holding above a critical support level at $2,200. If it can maintain this level, per Ali's forecasts, ETH could reach $3,000, and in a more optimistic scenario - $4,000. Analyst Ted Pillows also notes that ETH is on the verge of a major breakout, approaching the upper edge of its long-term triangular pattern.
Despite the recent fluctuations, analyst forecasts indicate positive prospects for Ethereum. Holding key levels and the activity of major investors may contribute to future price growth.
