Ethereum(ETH) Price Will Drop To $700 Level Following a Major Bull Trap
The price of Ethereum has recovered from its recent lows, outperforming the price of Bitcoin. The latest Ethereum price surge, according to an independent market analyst, will be a clear fakeout.
In a bear market, analysts estimate Ethereum’s price might fall to $750, an 85 percent decline from it’s all-time high.
Ethereum’s price has risen 30 percent in the last 48 hours and experts say ETH’s recovery has outperformed Bitcoin’s, with the altcoin regaining $1,100 in just two days.
After falling to a support level of $880 on June 19, Ethereum began a short-term uptrend and soared above $1,100, entering a short-term positive zone. The altcoin is currently seeing significant resistance at the $1,150 and $1,160 levels.
Justin Bennett, co-founder of Cryptocademy, agrees with this forecast of a fakeout. Fakeouts to one side of the pattern cause lengthy movements in the opposite way, according to Bennett. He sees $900 and $780 as Ethereum price support levels.
Fakeouts to one side of a pattern usually trigger extended moves in the opposite direction. $ETH is a perfect example. Fakeout above 1200 on the 15th and breakdown today. $900 and $780 are support. #Ethereum probably visits the latter. — Justin Bennett (@JustinBennettFX) June 18, 2022
Wendy O, the host of the O show and a prominent crypto expert, predicts the price of Ethereum might fall to $750. Wendy told NextAdvisor that the present Ethereum price is close to the start of 2021.
Bitcoin and Ethereum prices might plummet by as much as 85% in bear markets. If this is correct, an 85 percent drop from Ethereum’s all-time high of $4,800 would result in a price of $750, which Wendy is keeping an eye on.
Liquity’s largest liquidation
The wallet with code 0x2291F52bddc937b5B840d15E551e1DA8C80c2B3c liquidated a 71,863.47 ETH collateral position on Liquity at $927.13 at 19:39 GMT on June 18, according to data from Dune Analytics, a crypto data intelligence company. This was Liquity’s largest single liquidation ever.
Liquity is a decentralised borrowing protocol that allows users to take out loans with no interest in exchange for Ethereum collateral. Loans are paid out in LUSD, a Liquity protocol-based USD-pegged stablecoin.
The figure below shows the hourly total value locked (TVL) change on Liquity over the last week, with June 18 representing the highest ETH liquidation.Source