Peter Smith
● Crypto analyst Ali recently shared a worrying scenario for Ethereum holders. With ETH currently trading around $3,898, the token is struggling to break back above the psychologically important $4,000 mark.
● If Ethereum can't reclaim $4,000 and drops below the $3,800 support level, things could get rough. The downside targets? $2,400 in a moderate selloff, or $1,700 in a worst-case scenario.
● The main concern centers on these two price levels. Losing the $3,800 support could trigger panic selling and a cascade of liquidations from leveraged traders. This would likely shake confidence among retail investors and increase market volatility across the board.
● If we see a drop to $2,400 or lower, it would represent a major correction for ETH. Liquidations would pile up, trading volumes might dry up, and overall sentiment in the crypto market could take a hit. On the flip side, if Ethereum manages to hold above $3,800 and pushes past $4,000, it could spark a bullish reversal and set the stage for higher prices.
The worst-case scenario: Ethereum $ETH fails to reclaim $4,000, breaks through $3,800 support, and drops to $2,400 or $1,700. As Ali puts it
● Beyond technicals, Ethereum's price depends on its ecosystem growth—DeFi, NFTs, and other dApps—as well as competition from other chains and overall market conditions. With crypto markets remaining choppy, keeping an eye on these key levels is essential for anyone holding or trading ETH.
Peter Smith
