Ethereum Faces 58% Plunge If Support Level Breached

A prominent analyst has issued a warning that Ethereum (ETH) could experience a significant depreciation against Bitcoin (BTC) if it fails to maintain a crucial support level. The analyst, known by the pseudonym Sherpa, shared this outlook with his 245,400 followers on the social media platform X. According to Sherpa, Ethereum is currently at a critical juncture, described as a “do-or-die” level when compared to Bitcoin.

Sherpa's analysis indicates that if Ethereum loses its major support level at approximately 0.01745 BTC, it could plummet by around 58% from its current price. This potential drop would revert Ethereum to price levels last seen in early 2017. At the time of writing, Ethereum is trading at 0.01898 BTC, marking an 88% decline from its all-time high reached in June 2017.

In addition to his outlook on Ethereum, Sherpa also provided insights into Bitcoin's short-term price movements. He predicts that Bitcoin could experience a rally before undergoing a correction of up to 20% from its target price. Following this correction, another rally to a higher target price is expected. Sherpa notes that the price movements of Bitcoin will be correlated with those of altcoins throughout this period.

According to Sherpa, the continued rally in Bitcoin could push its price to $100,000, with altcoins performing well until that point. This would be followed by a pullback in equities, leading to a correction in Bitcoin's price to around $80,000, with altcoins also experiencing a pullback. After this choppy period, both Bitcoin and altcoins are expected to see significant gains in the third and fourth quarters of the year. At the time of writing, Bitcoin is trading at $94,460, reflecting a 13% increase over the past two weeks.