A crypto market analyst has issued a warning about Ethereum (ETH), predicting a significant price correction that could see the cryptocurrency fall to as low as $800, or even $400 per coin. While such a drop would represent a substantial decline from ETH’s current price, the analyst argues that it is necessary for a market reset, allowing prices to reflect genuine demand and establish sustainable support levels.
Analyst Says Ethereum Crash Is Critical For A Market Reset
Rafaela Rigo, a crypto market analyst, shared an Ethereum price analysis on X that has garnered attention from traders and investors. Rigo presented a chart analysis from 2024 in which she accurately forecast a price drop to $1,900 after Ethereum reached a bull run peak. That same analysis also predicted a decline to $800, a level the analyst identified as a “great buying opportunity.”
Rigo has updated her 2024 chart analysis to predict Ethereum’s next move. She forecasts that ETH’s price could crash to $800 during the ongoing bear market. With the cryptocurrency currently trading above $2,100, a drop to that level would represent a loss of over 61%.
Taking a more bearish view, Rigo stated that a further price drop to $400 is possible for Ethereum, particularly if the cryptocurrency cannot halt its bearish momentum. If ETH falls to this level, it would reach a historic low, returning the second-largest cryptocurrency to levels not seen since 2019.
Rigo noted that she previously described the 2024 cycle as catabolic and expects the current cycle to follow a similar pattern. She added that while a drop to $800 would be painful, it is necessary for a proper market reset. The analyst emphasized that the crypto market urgently needs this reset to eliminate the problematic projects entering the space. She also noted that many of these new crypto projects are pump-and-dump schemes that have negatively impacted sentiment and caused many investors to leave the market.
Rigo described her forecast as a “macro price prediction,” clarifying that the predicted events will take time to unfold. She urges investors and traders to remain vigilant, monitor market movements carefully, and avoid emotional trading.
Analyst Predicts Ugly Price Crash For ETH Soon
Market expert Ted Pillows has also shared an Ethereum price analysis, expressing caution about the cryptocurrency’s recent price action and a Bear Flag formation. Pillows warned that this Bear Flag could have significant negative consequences for ETH’s price.
At the time of writing, the cryptocurrency is trading above $2,100 following weeks of bearish pressure and volatility. Despite this resilience, Pillows cautioned that if ETH fails to hold above $2,100, “things could get ugly.” He predicted a potential price crash down to $1,960, representing a decline of more than 6% from current levels.
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