The crypto analyst that goes by CryptoKaleo on Twitter has predicted that the Ethereum price will drop to $1,600 before rallying toward the $2,400 price region. According to Kaleo, the price dip will represent a retest of the pre-LUNA/UST liquidation breakdown level.
Kaleo explained his position using an ETH/USD daily chart to highlight some of the major Ethereum price behavior since the middle of 2021. The events Kaleo highlighted include the Ethereum price rally from July to November 2021, when the ETH price rallied toward the $4,700 price level after bouncing from the $1,600 region.
Kaleo’s chart analysis revealed that the rally’s peak represents the beginning of a downtrend that extended to March 2023. It also expressed horizontal support, which has flipped into a resistance, considering the current price of ETH.
Having broken above the trendline that marks the downtrend, Kaleo thinks the price of ETH will consolidate and pull back to retest horizontal support established about a year ago. That support was in the aftermath of the infamous LUNA crash in May 2022. The unstaking of over $2 billion worth of UST triggered the LUNA crash. As a result, investors quickly liquidated hundreds of millions worth of investments.
According to Kaleo, ETH will bounce from this support to rally toward the resistance at $2,400. The analyst also noted that Bitcoin’s price would develop in a trajectory similar to Ethereum’s by dipping toward the $24,000 price region before rallying to retest the $40,000 price region.
At the time of writing, ETH’s price had broken below local support at $1,787 and was trading at $1,761. Dropping lower could see the flagship altcoin fall to the next support at $1,687, confirming Kaleo’s price dip prediction.
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Source: Cryptocurrency - investing.com
