Analyst eyes $2,500 target as support breaks

The scenario for ETH is bearish, and it could drag lower in the next couple of days. Ethereum had previously tested its resistance at $3,100. Analysts had predicted that a fall below that mark would trigger an unprecedented downfall for the 2nd-ranked cryptocurrency in terms of market cap. With Ether now traded at $3,046.11 at the time of writing this article, it is only obvious to assume that another fall is on the line.

While it was believed that liquidity was shifting to altcoins during the BTC consolidation, Ethereum has practically nothing going in its direction. Plus, the SEC’s position on the Ether ETF is still unknown.

The ETH/BTC pair has dropped below support of 0.05. This happened in 2016 and 2019, both years seeing a significant downfall in the token value of ETH. Analysts believe that a fall to 0.04 is likely, which could set the price target at $2,500. That said, the current scenario cannot be confused with the fact that there is no upswing in the picture for ETH. Based on the Ethereum price forecast, the coin can still make a comeback for the predicted value of $4,000 by the end of the year.

ETH exchanged hands at that value in 2024, but it only recently retraced to a lower value. There is no tentative timeline about when Ethereum will experience a bounce or recovery; however, it could follow BTC in the trend. Bitcoin has more than 50% of the global market share in the crypto sphere. Every movement that it makes on the chart has a domino effect within the ecosystem.

The value of Bitcoin continues to influence Ethereum significantly. While a rise in BTC has had little to no impact on ETH, a potential chain reaction still exists.

ETH is up by 1.57% in the last 24 hours, listed at $3,047.62 at press time. It further reflects a rise of 2.18% in the last 7 days and a fall of 13.88% in the last 30 days. The 24-hour trading volume has been shaded red, with a drop of 0.89%. The market cap has surged by 1.64% to $366 billion.

Bitcoin (BTC) is far from achieving a new ATH. Bitcoin Halving was expected to soften the decline in its value. That objective has been met, but a surge in the token value remains in the dark. 

BTC is currently exchanging hands at $63,251.47, up by 2.71% in the last 24 hours and 6.60% in the last 7 days. Notably, 24-hour trading volume and market cap are up by 3.29% and 2.70%, respectively. It is next expected to surpass the value of $100,000 by the end of this year, which is 2024.