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Like most digital assets, Ethereum saw a correction this week with a loss of more than 5% over the past 24 hours while trading just above $2,500. While increased on-chain activity may eventually have bulls betting on a rebound in ether, some experts disagree with this perspective.
Veteran cryptocurrency analyst Peter Brandt expects Ethereum to decline further to the point of losing more than 60% of its current price, with no sign of change.
Currently, Ethereum is trading at a 42-month low. While Bitcoin retested the $70,000 mark early this week, Ethereum is maintaining sluggish price action and is a long way from experts’ $4,000 target.
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Strong downward movement of ether
Ethereum is trading at a 42-month low against the world’s top digital assets, indicating bearish momentum. Zooming out from the price chart, Ethereum is in a downward spiral and a painful market correction for holders and investors.
According to Brandt, Ethereum’s bearish sentiment will continue without any reassuring signs of reversal.
It is interesting to note that there was no buy signal $ Ethereum
In fact, the chart is still bearish with the target at 1551 missed pic.twitter.com/sjkXyTQXU2– Peter Brandt (@PeterLBrandt) October 31, 2024
In a post on Twitter/X, Brandt shared a graph showing that there is only a mention of ether. He added that the Ethereum chart is bearish, as the bulls are making it difficult to reach the $1,551 target.
The 2-day chart highlights the asset’s ongoing downward momentum that began last August, characterized by a downward channel. A bearish flag for Ethereum is bad news for traders and coin holders, indicating a continuation of the downtrend.
Analyst sees bearish metrics for Ethereum
Aside from the bearish signs on the chart, Brandt also noticed some discouraging metrics for Ethereum. For example, Ethereum has fallen by more than 5% over the past 24 hours, recording a steeper decline than Solana at -4.91%, and Bitcoin at -3.87%.
Brandt also noted that the ETH/BTC trading ratio fell to 0.03613, the lowest level in 42 months, as BTC continues to lead the broader cryptocurrency market. Although Ethereum’s price is currently at $2,507, Brandt expects the asset to fall further to $1,551, reflecting a potential 62% decline from its current value.
$1,551 target was not met by Ethereum
Brandt sees $1,551 as an unmet target for the asset and a key milestone. In his analysis, this level is considered a point of surrender for its owners. The recent price declines have affected investor and holder confidence, as Ethereum struggles to maintain the $2,400 support.
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As the second largest cryptocurrency, Ethereum has shown initial signs of a rally. Many observers expected the market to rise, targeting a long-term price of $6,000. Short-term estimates place the Ethereum price at $2,750.
However, Brandt offers a more bearish outlook for Ethereum, saying that the asset will decline unless a new set of technical indicators emerge.
Featured image from Tokpie, chart from TradingView