Ethereum (ETH) could be headed for more turbulent times ahead, according to prominent crypto analyst Klejdi, who predicts a potential drop to $1,400 levels. This bearish outlook comes as recent market recovery signs prove short-lived, with ETH showing particular weakness against Bitcoin.
Technical Analysis Points to Further Downside
The second-largest cryptocurrency by market capitalization has already demonstrated significant weakness, losing approximately 12% of its value in just three days following a failed breakout attempt. This price action aligns with broader market uncertainty, as Bitcoin retreats from recent highs above $81,000.
Key technical indicators suggest ETH could experience:
- Initial consolidation around current levels
- Formation of new bearish patterns
- Potential drop to $1,400 support zone
Whale Activity Signals Market Sentiment
Adding to the bearish outlook, on-chain data from Lookonchain reveals concerning whale behavior. A notable early Ethereum investor who had held 5,001 ETH since 2017 ($277 entry) has completely liquidated their position. This capitulation from long-term holders could signal broader market pessimism.
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Contrarian Views: The Bull Case for ETH
Despite the bearish signals, some analysts maintain optimistic outlooks. Virtual Bacon suggests ETH is merely retesting key support levels between $1,700 and $2,100, while Crypto Patel projects ambitious targets of $7,000-$10,000 for Q2-Q4 2025.
Key Price Levels to Watch
- Current Price: $1,850
- Key Support: $1,400
- Resistance Zones: $2,100, $2,500
- Accumulation Range: $1,300-$1,900
FAQ
Q: What’s causing Ethereum’s underperformance?
A: The primary factors include Bitcoin’s dominance, broader market uncertainty, and potential whale capitulation.
Q: When might ETH reach its bottom?
A: Analysts suggest the $1,400 level could serve as a strong support zone, potentially forming a bottom in the coming weeks.
Q: Should investors buy ETH at current levels?
A: While some analysts recommend accumulating between $1,900-$1,300, it’s crucial to practice proper risk management and consider your investment timeline.