Key Highlights:
- Ethereum price faces volatility as whale liquidation risks and bearish metrics weigh in.
- Analysts offer diverging views on Ethereum’s future, with predictions ranging from $7K to $10K.
- Declining active addresses and decreasing burn rates signal potential inflationary pressures.
Ethereum price has fluctuated between $1,700 and just under $2,000 recently. This reflected the ongoing volatility in the cryptocurrency market.
As of March 31, ETH price displayed mixed performance across timeframes. It recorded a slight 0.2% gain in the past hour but dropped 2.0% over the last 24 hours.
The asset’s 7-day and 30-day losses are 10.4% and 15.4%, respectively. This indicated a continued downward trend.
Amid market uncertainty, analysts present differing forecasts for the future of Ethereum. Meanwhile, whale liquidation risks might intensify downward pressure on prices.
CryptoElites’ Bold $10K Prediction for Ethereum
Among the most optimistic forecasts, CryptoElites has boldly predicted that ETH price could reach $10,000 by 2025. Despite the current market challenges, CryptoElites believes that the long-term potential for Ethereum remains strong.
The analyst emphasized that Ethereum’s path forward is clear, urging investors to “stay focused and trust the process.” While this projection starkly contrasts the present downturn, it reflects an unwavering confidence in Ethereum’s eventual recovery and growth.
Analysts hold an optimistic outlook for Ethereum. They believe its strong fundamentals could lead to a significant price surge in the future.
However, this long-term target is still speculative. Ethereum currently faces short-term price pressures. It also encounters potential risks of further price declines.
Whale Liquidation Risks and Technical Indicators
As Ethereum struggles with declining prices, major cryptocurrency holders are at risk of forced liquidations. LookOnChainrecently reported that two Ethereum whales connected to MakerDAO hold a combined total of 125,603 ETH. It was valued at approximately $229 Million.
These large positions are nearing liquidation levels, with the price thresholds set at $1,787 and $1,701. If ETH price continues its downward trajectory, these positions could be liquidated. Potentially exacerbating the downtrend and causing further market instability.
Because of this, technical patterns worsen Ethereum’s risk at a critical juncture. Analyst Jonathan Carter observed that Ethereum remains stuck near the lower edge of a descending triangle.
This pattern is often associated with a bearish sentiment. It could suggest potential further downside for the asset. Carter mentioned that a rejection of nearly $1,800 in Ethereum could trigger a rebound. This might lead Ether to test the resistance levels at $1,950 and $2,080.
If ETH price break through these resistance zones, it could look at much higher targets of $2,230 and $2,320. Nevertheless, with the risk of liquidation hanging over the market, anything could happen at any moment.
Analysts Highlight Diverging Views
Analysts have offered varying outlooks on the asset’s potential as the Ethereum market grapples with uncertainty. Javon Marks, for instance, drew attention to a pattern he believes resembles one seen in 2023. This resulted in a significant price increase.
Marks suggested that this pattern might drive ETH price significantly higher. It could surpass the $7,000 mark this time. His analysis indicated that Ethereum may be setting up for a significant upward movement despite the current volatility.
In contrast, CryptoBusy used a more moderate approach and mentioned that Ethereum failed to demonstrate the same growth as Bitcoin. The analyst pointed out some bearish on-chain indicators: falling active addresses, history-low fees, and a low burn rate after the Dencun upgrade.
CryptoBusy highlighted that these factors exert post-deflationary pressures on Ethereum. This raises questions about its price stability over the long term.
CryptoBusy also stated that such conditions may entice institutional players to invest in Ethereum at these levels. However, questions remain about what may trigger its recovery soon.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
