Even though Ethereum price appears to be holding steady below $2,000, the slowdown in the selloff has done nothing to ease fears that further declines are coming. In fact, analysts believe that this stoppage is only temporary and that the second-largest cryptocurrency by market capitalization will soon experience another significant decline. This is due to Ethereum’s past performance, which has often seen significant resets before potentially bottoming out.
Scenario where Ethereum price heads towards $600
Last year, when the market was still in the throes of a bull market, there were loud calls for Ethereum to reach $10,000 to $15,000. But those hopes have since been dashed, and now even $5,000 seems like a pipe dream. Nevertheless, analysts like Alexhiz of the TradingView website believe that although the road to this goal may be quite bumpy, the dream is not completely dead.
In a recent post, a crypto analyst explains that Ethereum is likely to undergo a significant macro correction. If this is correct, it means that the support that the altcoin seems to have established above $1,900 is fragile at best and could break quickly.
The bearish scenario Alex points out is for the price to fall by another 60%, ultimately pushing the Ethereum price down towards $600. While such a price point may be disastrous in the short term, analysts believe it is necessary for a five-digit scenario to play out.
why crash is good
Crypto analysts believe that if the price of Ethereum crashes to $600, this would mean a complete liquidity reset and a complete capitulation of the market. In such a scenario, more powerful hands control the price, allowing for strong long-term accumulation.
Following the accumulation phase is an expansion phase, where prices can rise rapidly. The analyst added: “Looking further ahead (2028-2029), in a new bullish cycle, ETH could target the $10,000-$15,000 range based on historical cycle movements and liquidity growth.”
Considering this, such a scenario will take many years to materialize, as there may be a long-term accumulation trend, as seen in previous cycles. Growth could also depend heavily on the price performance of Bitcoin, which has remained the market leader for more than a decade.
Featured image from Dall.E, chart from TradingView.com
