An analyst is forecasting that Ethereum's price could see a decline below $3,000 due to a lack of strong support levels, as the asset experienced a 6% decrease in value over a 24-hour period.

The second-largest cryptocurrency, Ethereum, traded below $3,300 for the first time since early March on April 2nd amid a general downturn in the crypto markets. The overall crypto market capitalization dropped by 4.4% to $2.6 trillion on the same day according to CoinGecko.

Analyzing the situation, Ali Charts expressed concern that if Ethereum's value falls below $3,460, it could pose challenges for investors anticipating higher prices. Referencing data from IntoTheBlock, the researcher highlighted potential support levels where the token might stabilize.

If this prediction comes true, Ethereum's price might retrace back to $2,850 or even lower. The recent decrease in Ethereum's value has already led to liquidations totaling over $113 million out of a total of $500 million in a single day. The losses were primarily borne by long positions with short positions contributing as well, as reported by CoinGlass.

A notable Ethereum-denominated position valued at $7.5 million was reported as the largest single liquidation order on the OKX cryptocurrency exchange, according to on-chain analytics data.

Furthermore, a recent report from Coinbase raised concerns about hidden risks related to Ethereum's staking sector, despite a growing interest in restaking and liquid restaking in the DeFi space. Eigenlayer's project, initiated by Sreeram Kannan in 2021, has become increasingly popular with a total value locked exceeding $12 billion as of now.

The analysts from Coinbase, David Duong and David Han, pointed out potential drawbacks associated with staking strategies related to Eigenlayer and similar protocols like Ether.fi, warning of possible negative financial and security consequences for users. They also noted that the initial returns from staking might not be as lucrative as anticipated by the market.

Despite these risks, the analysts are optimistic that the restaking sector will play a critical role in Ethereum's ecosystem infrastructure moving forward.