Ethereum’s native token, Ether (ETH), is projected to decline by 40% to $1,200 in the coming weeks, as highlighted by analyst Leshka.eth. This bearish outlook is based on a fractal pattern that has previously led to significant price drops of 45% and 48%. The current setup indicates a potential bull trap, with ETH failing to maintain bullish momentum after recent price movements above the Supertrend’s upper band, which has historically acted as a critical support level.
The implications for the financial markets are stark. ETH has already fallen over 17% from its recent monthly high, with macroeconomic pressures, including geopolitical tensions and recession fears, weighing heavily on risk appetite. Additionally, significant outflows from US spot Ether ETFs, totaling around $300 million, and a lack of accumulation among major wallet holders suggest dwindling demand and investor conviction.
Market professionals should closely monitor the $1,990 level for potential breakdowns, as a breach could trigger further declines towards the $1,200 target, reflecting broader bearish sentiment in the crypto space.
Source: cointelegraph.com