Ethereum Faces 12% Drop, Analysts Predict Further Decline to $1,400

Crypto analyst Klejdi has warned that Ethereum, the second-largest cryptocurrency by market cap, is likely to experience further downtrend, with the potential to drop to as low as $1,400 before finding a bottom. This bearish outlook comes as Ethereum has underperformed other top cryptocurrencies, losing nearly 12% of its value within just three days after breaking out of its recent pattern.

Klejdi's analysis, shared on TradingView, suggests that Ethereum's movement is closely tied to Bitcoin. With Bitcoin already showing signs of further decline after dropping to $81,300, the analyst predicts that Ethereum could follow suit. According to Klejdi's chart, Ethereum is likely to consolidate near its current level before continuing to move lower, with the drop to $1,400 potentially happening this month.

Klejdi advises waiting for Ethereum’s price to form another bearish pattern before entering a trade, reiterating the strong possibility of ETH extending its drop to $1,400. This projected price crash is already being anticipated by Ethereum whales, with onchain analytics platform Lookonchain revealing that an ETH OG has sold off all its holdings. This investor, who bought 5,0001 ETH at $277 in 2017, started selling last month, indicating a lack of confidence in Ethereum's near-term recovery.

Despite the bearish outlook, some analysts remain optimistic about Ethereum's long-term prospects. Crypto analyst Virtual Bacon believes that Ethereum will reach new highs, noting that the altcoin is back at its key bear market breakout zone, retesting the $1,700 and $2,100 range. Virtual Bacon predicts that Ethereum will continue to chop around this range in the short term but will catch up fast once the US Federal Reserve pivots and global liquidity turns.

Crypto analyst Crypto Patel also shares a bullish sentiment, stating that Ethereum’s biggest run is coming. He predicts that Q2 to Q4 of this year will be life-changing for ETH, potentially marking the cycle top window. Patel advises market participants to accumulate between $1,900 and $1,300 with the target of between $7,000 and $10,000 in mind.

At the time of writing, the Ethereum price is trading at around $1,850, up in the last 24 hours. This price movement reflects the ongoing volatility and uncertainty in the cryptocurrency market, with analysts divided on Ethereum's short-term prospects.