Analysts express diametrically opposite opinions on the prospects of Ethereum, predicting both sharp rises and significant price drops.
Optimistic Outlook
Pseudonymous analyst Weslad claims that Ethereum (ETH) has reached a critical point where the price could either soar to a historical level of $6,000 or plummet to $1,800. In his analysis, he correlates the recent price fluctuations with the completion of the ABCDE wave structure, which finishes a multi-year 'symmetrical pennant'. This structure, he believes, is poised for an 'explosion'.
The analyst also noted that the current situation on the chart is forming a bullish Inverse Head and Shoulders (IH&S) pattern, with a stubborn resistance level around $2,855. Weslad warns: 'A confirmed breakout above the neckline [$2,855] would likely validate both the IH&S and the breakout from wave D, opening the path to the target of $6,000 and beyond.'
Potential Risks and Warnings
However, the analyst also highlights possible risks. He indicated that if Ethereum fails to break through the $2,855 resistance level, this could lead to a retracement into wave E, which in turn may drag the price down to a 'high-confluence demand zone' ranging from $1,400 to $1,800. This could represent a potential drop of up to 40% from current levels.
Calculating Possible Downturn Scenarios
Other analysts also predict different price targets for Ethereum. For instance, Jeremy Fielder has predicted that Ethereum could reach $6,500 by the end of the year, fostering an upward trend driven by growing adoption of Web3 and positive regulatory changes. However, the more moderate prediction by Titan of Crypto sets a target at $4,100, which, while lower, does not rule out the possibility of growth.
Thus, experts express contradictory views on the future of Ethereum, highlighting both the opportunities for growth and the risks of decline. Current price levels will be critically important for the market's subsequent movement.