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Ethereum (ETH) Eyes Crash to $1,200 Unless This Happens: Expert Warns

Wed, 09/06/2023 - 12:35
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Gamza Khanzadaev
It is Ethereum's do-or-die moment as crash to $1,200 is possible if this action does not happen, warns top analyst Ali Martinez
Ethereum (ETH) Eyes Crash to $1,200 Unless This Happens: Expert Warns
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In a recent observation, prominent analyst Ali Martinez shared a sobering prediction about the price of Ethereum (ETH). Martinez believes that Ethereum's value could potentially decline to $1,200 unless certain conditions change. The expert's prediction is based on data from blockchain analytics provider IntoTheBlock, specifically focusing on the distribution of profit and loss among Ethereum token holders.

Ethereum (ETH) Popularity Drops to Late 2020 Levels Based on This Indicator

According to this data, a significant number of ETH holders are currently experiencing losses, particularly in the price range of $1,633 to $1,681, where approximately 6.39 million tokens are in the red. Below this range, down to a minimum of $1,385 per ETH, buying support appears weaker, as indicated by the size of the corresponding green circles on the infographic.

Source: IntoTheBlock

This combination of a substantial number of Ethereum tokens incurring losses for their holders and weaker buying support at lower price levels raises concerns about the cryptocurrency's stability. Martinez suggests that unless there are catalysts for growth in the near future, Ethereum may be vulnerable to what experts refer to as "time capitulation." In this scenario, the worst-case scenario could be a flash crash, for sure leading to a significant increase in unprofitable addresses among ETH holders.

Ethereum (ETH) Price Analysis for September 5

The crypto community is now hoping for positive developments that could prevent the potential crash and push the ETH price up to $1,681 and higher. As Ethereum faces a critical juncture, crypto investors should be paying close attention to market trends in anticipation of potential changes within the space.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.