The Ethereum price action is raising red flags among analysts, with technical indicators pointing toward a potential crash to the $2,000 level. Despite experiencing a significant uptick recently following Bitcoin’s price surge, concerns continue to grow that a deeper correction may be unfolding. 

Ethereum Price Crash To $2,000 Imminent

Based on a new report by Master Ananda, a TradingView crypto analyst, the Ethereum market is flashing warning signs as its price struggles below the critical resistance zone. At press time, Ethereum is trading at approximately $2,605 after being rejected from a local high of around $2,788.

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Ethereum’s 4-hour chart presented by Master Ananda shows that the top altcoin has likely completed a short-term top, and now a corrective move is in play. The analysis hints at a looming price crash, with technical forecasts suggesting a retracement toward the $2,000 level or lower before the next bullish impulse. 

The analyst’s bearish continuation thesis appears to be a high-probability setup, with Ethereum expected to revisit lower Fibonacci retracement levels. Notably, the chart reveals a subtle bearish divergence forming as the price pushed slightly higher in May but with diminishing momentum. This, in turn, created a rising resistance line while volume and price action failed to confirm new highs.

Noticeably, Ethereum’s price has since broken below the 0.230 Fibonacci level, signaling the possible start of a broader correction phase. The next probable support areas lie at $2,280 (0.382 Fib), $2,085 (0.5 Fib), and most significantly, the $1,900 price point at the 0.618 Fib Retracement level. 

The highlighted green zones in Master Ananda’s chart represent potential support and buying areas, which point to the $1,900 to $1,735 (0.618-0.786 Fib) range as the most likely zone for a higher low to form. The previous major low occurred on April 7, and the expectation is that this correction will end above that level. Until then, a short-term correction remains the most likely scenario, and traders are warned to take caution as the chart further highlights a possibly more resounding crash to $1,385. 

ETH Trade Strategy: Buy The Dip And Go Long

While sharing his bearish thesis for Ethereum, Master Ananda also provided a clear strategy for investors and traders. He advised long-term holders to wait patiently for the projected drop and assess the support reaction before looking for clear reversal signals. 

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Buying into support zones like $1,900 or even as low as $1,736 could provide optimal entry points for long-term positions. While bears may still attempt to short the market, Master Ananda assures that the downside remains limited. 

The analyst emphasizes the importance of planning and avoiding impulsive trading by creating ideal entry and exit points while respecting the prevailing market trend. With Ethereum’s bullish outlook still intact, this projected price crash could become an opportunity for many traders instead of a threat.

Featured image from Getty Images, chart from Tradingview.com

CANTO, the native token its namesake’s layer-1 blockchain, experienced a volatile trading session on Thursday, rising by 250% before losing 60% of its value over the subsequent six hours.

The platform had lost the majority of its TVL (total value locked) and trading appetite after a feverish launch last year that saw it reach a $238 million market cap with $204 million in TVL.

It currently has just $4.6 million worth of assets locked on the chain as a network outage prompted an exodus from the chain.

Canto’s plight also occurred during a wave of new layer-1 and layer-2 blockchains that caused an over saturation in protocols and liquidity.

The project has not posted an update on X since September, despite stating that a new roadmap “would be released soon.”

Thursday’s move can be attributed to a low liquidity low volume impulse in market buys, causing a momentary spike before a sell-off sparked by underwater positions taking profits.

Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!

So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

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So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.