Cryptocurrency analyst Marcus Corvinus commented on the price drop of Ethereum, bringing optimism about this altcoin's recent decline. The analyst explained the current price movements and suggested that this is just a slight dip before another parabolic uptrend to new highs.
The price movements of Ethereum and ETH's next target
In a post on X, Marcus Corvinus mentioned that a potential bullish strength is forming for Ethereum's price. This analyst also remarked that ETH is playing a smarter game than Bitcoin currently. While BTC has made lower lows, Corvinus asserts that ETH continues to hold with higher lows. This analyst claims that this is not just about price movements but also strength under pressure.
The cryptocurrency analyst then highlighted the ongoing developments in Ethereum's price. He noted that the declining trading volume has gradually decreased since last month, indicating weak buying pressure is diminishing. Furthermore, Corvinus revealed that the Hidden Bullish Divergence RSI indicator has made lower lows while the price has made higher lows. The analyst stated that this is a typical signal of a strong continuation setup.
Meanwhile, Corvinus stated that the Relative Strength Index (RSI) is oversold, but the price of Ethereum has maintained above the support level from July after two retests. The analyst believes this is not a coincidence, which is why he thinks ETH will continue to rise. He explains that ETH is not reversing but is consolidating at the top, a pattern that often ends with a breakout upwards.
In line with this, the cryptocurrency analyst stated that the collapse of Ethereum's price is not a sign of the end of the volatility phase but merely the calm before the next storm. He added that the continuation of ETH seems inevitable and his target for this cycle remains between $7,000 and $8,000. According to Corvinus, the question is not whether a breakout will happen, but when it will occur.
ETH will retest at least $3,000 before continuing to rise
In a post on X, BitMEX co-founder Arthur Hayes suggested that the price of Ethereum could still fall to the psychological level of $3,000 before bouncing back. This cryptocurrency founder pointed to Trump's tariffs and weak U.S. employment data as reasons for this outlook.
Hayes also noted that no major economy is generating enough credit quickly enough to boost nominal GDP. Therefore, he does not see where the liquidity will come from to stimulate the price rally of Ethereum or other cryptocurrencies. The BitMEX co-founder also predicts that Bitcoin's price will retest the psychological threshold of $100,000.
At the time of writing, the price of Ethereum is trading just below $3,500, down nearly 5% in the past 24 hours, according to data from CoinMarketCap.