Analyst Predicts ETH To Note 13% Gain, Here’s Why

The Ethereum price, the world’s second-largest cryptocurrency by market cap, saw a steep decline today amid a widespread crypto market selloff. Meanwhile, this drop comes in the wake of stronger-than-expected U.S. job data, which has dampened investor sentiment over a hawkish stance by the Federal Reserve.

However, despite the downturn, some analysts are optimistic about Ethereum’s potential for a significant rebound.

Analyst Predicts 13% Ethereum Price Rally

Despite Ethereum’s recent price dip, a prominent crypto market analyst, known as Mags (@thescalpingpro) on the X platform, anticipates a strong recovery. In a recent X post, Mags compared the current Ethereum price trend to historical patterns, suggesting that the cryptocurrency could experience a significant rally soon. According to Mags, Ethereum is “forming a similar structure” to a previous cycle, after which the crypto has soared 13%.

Notably, Mags’ analysis indicates that Ethereum might reach up to $4,200 if the predicted trend holds true. Currently, Ethereum is trading near $3,700, and this potential rally would represent a 13% increase. This optimistic forecast is based on Ethereum’s historical performance, where similar patterns have led to substantial gains.

Meanwhile, supporting this outlook, Mags shared a price chart showing Ethereum’s current structure, highlighting similarities to past cycles. The comparison suggests that the recent decline might be a precursor to a strong upward movement, akin to previous instances where Ethereum rallied significantly after a similar setup.

Also Read: Ethereum Foundation Wallet Deposits $56 Million in ETH on Kraken, ETH Price Drop Soon?

Price Amid Contrastive Views

While Mags presents a bullish outlook, not all experts share the same optimism. A recent report from 10X Research has introduced a more cautious perspective. According to their analysis, Ethereum has broken a critical support level of $3,725. This breach has sparked concerns about potential ETH liquidations.

The 10X Research report highlights the risk of imminent liquidations following Ethereum’s drop below the key support level. Supporting this view, data from CoinGlass shows that Ethereum has experienced significant liquidations over the past 24 hours.

Specifically, $59.61 million worth of Ethereum has been liquidated, with $52.23 million in long positions and $7.37 million in short positions. This data underscores the market’s volatility and the potential risks associated with Ethereum’s current price level.

However, despite that, optimism prevails with soaring optimism over the U.S. Spot Ethereum ETF. In addition, some market experts believe that the recent decline in the ETH price could provide a buying opportunity for investors.

As of writing, Ethereum price fell 3.21% to $3,683.75, while its trading volume over the last 24 hours soared 40.27% to $18.08 billion. Meanwhile, the Ethereum Open Interest fell 0.95% to $16.54 billion, reflecting the current gloomy sentiment hovering in the market.

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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.