The crypto industry is still falling, with the global crypto market capitalization falling 1.17 percent to $1.29 trillion. According to Coinmarketcap numbers, worldwide crypto volume fell 11.05% to $87.18 billion. Ethereum (ETH) was trading down 0.79% at $2,056.23.
Many investors in Ethereum, the second most successful cryptocurrency by trading volume, have lost their crypto wallets, with 532,426 Ethereum worth $1.6 billion.
Amidst the current crypto chaos, Ethereum is currently trading at over $2,000 per coin. It cost around 30 cents as it was initially offered for ‘presale’ in 2014.
According to a recent analyst story, 22V researcher John Roke predicted that Ethereum could drop to $420, a loss of 80% from its current price, and these are the reasons.
The analyst believes that Ethereum, currently trading at $2,000, is about to break the support area and possibly drop below $420. Roke drew attention to a price range with $3,580 top and $2,000 now ground.
After ETH price drops below $2,000, it is no longer within the range specified earlier and will begin to decline to break the key graph below around $420. As the second largest cryptocurrency is losing value rapidly, it has fallen below all moving averages including the 50-, 100- and 200-day lines. The previous section indicates that a downward trend is a significant downside factor for any asset.
According to Roque, Ethereum is also sold on both the weekly and daily charts, which is why it may not rise in the near future.
Is this really such a big problem?
Although experts claim that Ethereum is basically “gone”, important support levels are still to be seen for the second largest cryptocurrency in the market. For example, on the weekly chart, investors still have to challenge the 200-week average resistance.
On a monthly track, which is equally bearish in Rocke’s opinion, ETH has yet to touch the 50-month average, which will act as a key support if Ether drops to $420.
While large estimates appeal to a specific type of trader, the volatility of the bitcoin currency market can often make long-term prediction impossible.