The cryptocurrency market experienced a notable revival over the past several hours, and Ethereum (ETH) is among the top performers. Despite its resurgence, though, one popular analyst believes the asset may not be entirely out of the woods yet.
Cause for Concern
The past week has been quite turbulent for ETH, whose price crashed below $3,100 on November 5. In the following days, the bulls made some attempts to reclaim the lost ground, and the major uptick occurred on November 9 when US President Donald Trump promised to distribute at least $2,000 to every American outside the high-income bracket.
ETH rose to as high as $3,650 before slightly retracing to the current $3,610 (per CoinGecko’s data), representing a nearly 20% increase from the local bottom witnessed earlier this month.
Despite the pump, however, some analysts warned that the second-largest cryptocurrency remains in a dangerous zone. X user Posty supports that thesis, arguing that the “structure is still in a multi-month downtrend.”
He thinks multiple key levels in and around $4,000 might prevent a more substantial comeback. “Let’s put in a higher low and higher high if we’re truly ready to run this back,” the analyst added.
Ted also outlined a rather cautious prediction. In his view, crossing a daily candle above $3,700 could lead to a rally to $4,000, but a rejection may be followed by a drop to the $3,400 support area.
The Road to a New ATH?
Many others have no concerns and think ETH’s valuation could soon skyrocket to new historic peaks. X user Cas Abbe suggested that the asset’s plunge towards $3,000 last week appears to be “a fakeout,” comparing it to the dip that occurred in Q2 this year, which was followed by a 100% rally.
For his part, Ali Martinez envisioned the rise to a fresh all-time high of $10,000. However, he assumed that the price could first collapse to $2,000 before exploding to that level.
The low amount of ETH tokens stored on crypto exchanges supports the long-term bullish scenario. Currently, there are fewer than 16 million coins held on such platforms, which is quite close to the nine-year low witnessed earlier this month. The development suggests that investors have been shifting towards self-custody methods, thus reducing the immediate selling pressure and signaling that there are no signs of mass profit-taking.
