Famous crypto analyst John Roque says that with Ethereum (ETH) falling below $ 2,000, a bigger drop is waiting for him. Describing this in his latest statement to Bloomberg, Roque believes that Ethereum will see an 80% drop from the current price and may fall as low as $420.
ETH Signal Direction
At the time of this writing, ETH is trading at around $2,080, up 2% in the last 24 hours. The analyst believes that Ethereum, which is currently trading around $2,000, is in the process of leaving the support zone. Roque emphasizes that the high of this support zone is $3,850 and the lower limit is $2,000.
According to the analyst, if Ethereum drops below $ 2,000, it will not only leave this support zone, but this decline will begin to bring it down to $ 420 levels. Also, looking at the 50, 100 and 200-day moving averages of Ethereum, it is seen that it has reached the lowest levels. These average values can mostly signal the future direction of the crypto, and therefore Ethereum is thought to follow a downward movement.
How Low Can It Drop?
However, Roque argues that ETH is in the oversold territory on both the weekly and daily charts, so it will not be able to show a recovery in the near future. Although the pessimistic analyst claims that Ethereum is almost finished, there are still big support points for Ethereum, the second largest cryptocurrency in the market. ETH’s charts reveal that traders have yet to test the 200-week average.
Roque underlines that ETH does not even touch the 50-month average, especially on its monthly chart. Therefore, the analyst states that Ethereum’s declines will be triggered and it will lose as much as 80% in price and fall as low as $420. Although the analyst’s claim is bold, the volatility of cryptos is always surprising. Therefore, these rises and falls are in the hands of investors beyond the forecasts of analysts.