Crypto analyst and trader Ali Martinez, who often shares his crypto charts and predictions on Twitter (now the X app), expects the second-largest cryptocurrency, Ethereum, to face a severe price correction. Currently, the value of Ethereum is declining, which is affected by the significant decrease in the price of the popular cryptocurrency Bitcoin.
Ali Martinez tweeted a picture of an ETH/USD chart from Coinbase. It shows an Ascending Triangle pattern. Generally, it points to the ongoing upward trend persisting. However, at times, it indicates an upcoming reversal of the price movement.
Ethereum declined over 10% in the past week, falling to $1,650. ETH looks weak on the technical chart, which shows a further 45% correction from current levels.
Earlier on August 20, the expert pointed out that the fundamentals of the Ethereum network are very weak, indicating a bearish trend. He said the number of active Ethereum wallets per month is lower than the normal annual average. It shows low blockchain activity, which is a strong signal of the network’s low health and utilization, he added.
“Slipping beneath the $1,600 – $1,550 bracket for $ETH might set the stage for a significant 37% – 45% correction, targeting $1,000″.
After Thursday’s price crash last week, the ETH experienced a partial recovery. This occurred due to reports emerging about the US Securities and Exchange Commission potentially approving the Ethereum futures ETF. Volatility Shares is set to launch Ether Strategy ETF (ETHU) on October 12, 2023, said Eric Balchunas, senior ETF analyst at Bloomberg.
However, despite the positive report from Bloomberg, the Ethereum wheel has not shown support. They have been selling off their holdings consistently, even after a slight price improvement that was seen on Friday following a major sell-off.
Since around mid-July, Ethereum whales owning between 10,000 to 100,000 coins, have been steadily selling their coins on the market. Notably, between July 14th and August 18th, they reduced their holdings of ETH coins by 1.12 million.
The decrease of 4% in wheel holdings correlated with an 18% decline in the price of ETH over the same period from July 14th to August 18th.
Investors See Ethereum Decline As An Opportunity
At the time of writing, ETH was changing hands at $1,644, down 1.19% in the past 24 hours. Furthermore, it experienced a 9.91% decline in the last seven days and a 12.38% decline on the monthly chart.
It seems the future may bring further declines in value. However, many Ethereum enthusiasts and crypto experts suggest that now is the right time to accumulate and hold the cryptocurrency. They believe that the price will rise soon.