Despite the Ethereum price looking to be leveling out below $2,000, the slowdown in the crash has done nothing to allay fears that more decline is coming. In fact, analysts believe that this stop is only temporary and that the second-largest cryptocurrency by market cap will make another major drop soon. This is due to past performance, where the Ethereum price has often staged a major reset before eventually making a possible bottom.
The Scenario That Says Ethereum Price Is Headed For $600
Calls for Ethereum reaching $10,000-$15,000 were echoed loudly in the last year, when the market was still in the throes of the bull market. However, those hopes have since been dashed, with even $5,000 now looking like a pipe dream. Nevertheless, analysts like Alexhiz on the TradingView website believe that the dream is not completely gone, although the path toward this target may be quite rocky.
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In a recent post, the crypto analyst explains that it is likely that Ethereum will make a major macro correction. If this is correct, then it means that the support that the altcoin seems to have established above $1,900 is fragile at most and could end up breaking soon.
The bearish scenario that Alex points to is another 60% price drop, which would eventually push the Ethereum price down toward $600. While such a price point may be disastrous in the short-term, the analyst believes that it is needed for the 5-figure scenario to play out.
Why A Crash Is Good
If the Ethereum price were to crash as low as $600, the crypto analyst believes this would mean a complete liquidity reset and a full market capitulation. Such a scenario would allow for strong long-term accumulation, with stronger hands taking control of the price.
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What would follow the accumulation phase would be an expansion phase, where the price could rise rapidly. The analyst also added: “Looking further ahead (2028–2029), in a renewed bullish cycle, ETH could target the $10,000–15,000 range based on historical cycle behavior and liquidity growth.”
Given this, such a scenario would take years to play out, as there could be a long, drawn-out accumulation trend, as seen in the previous cycle. Growth could also be highly dependent on the Bitcoin price performance, being the market leader for over a decade.
Featured image from Dall.E, chart from TradingView.com