Make or Break Season? Crypto Analyst Predicts A Fall To $1,200 If Ethereum Stays Beneath This Level

Opeyemi Sule

1 year ago

3 mins read

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Like most altcoins, Ethereum (ETH) has seen its price succumb to the negative market sentiment in recent weeks. This unfavorable market condition has consistently caused the second-largest cryptocurrency to trade beneath the $1,700 level.

Could Ethereum Price Fall To $1,200?

In an X post dated Wednesday, September 6, crypto analyst Ali Martinez offered insight on the price of Ethereum. The analyst shared that the value of ETH faces a potential significant correction to $1,200 if it stays below $1,680.

Source: IntoTheBlock/ali_charts

Using data from the blockchain analytics platform IntoTheBlock, Martinez’s projection revolves around the purchasing areas where most investors acquire ETH. According to the analytics platform, the price zones beneath the range of $1,633 to $1,681 are “weak purchasing areas,” which hint at weak support.

IntoTheBlock data shows few investors bought ETH beneath this level – down to the $1,385 price range. This ultimately implies that the support is thin around those levels – as indicated by the small size of the green circles in the image above.

With weaker support at the lower price ranges, the Ethereum price might be unable to stay afloat should bearish pressure increase. This explains why crypto analyst Ali Martinez believes the ETH price beneath $1,680 is a source of concern for traders.

Meanwhile, the significant percentage of holders currently at a loss exacerbates this risk. Some ETH investors may choose to sell their assets to cut their losses, which could trigger downward pressure on the cryptocurrency’s price.

This Smart Whale Purchased 19,500 ETH – What Do They Know?

On a positive note, an Ethereum whale has been purchasing ETH in the past two days, according to the on-chain analytics platform Lookonchain.

On Tuesday, the 5th of September, the analytics platform revealed that the whale deposited $36 million USDC on Binance and withdrew 9,819 ETH (worth $15.9 million at the time).

Subsequently, the whale withdrew 9,689 ETH (worth $15.8 million) from Binance on Wednesday, bringing their total purchase to 19,506 ETH (equivalent to $32 million).

Typically, when large amounts of cryptocurrencies are moved out of centralized exchanges, it indicates that whales are accumulating – and sometimes anticipating a price rally.

Moreover, looking at this particular whale’s past transactions shows that they have the habit of buying Ether at low prices and selling at high prices to make a profit.

Hence, this latest transaction suggests that the whale is expecting a bounce. However, it is worth noting that the price of Ethereum has not changed in the past day.

According to CoinGecko data, the Ether token currently trades at $1,624.35, with a 0.8% price decline in the last 24 hours.

ETHUSDT price consolidating on the daily timeframe | Source: ETHUSDT chart on TradingView

Featured image from SoFi, chart from TradingView

Opeyemi Sule

Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.

Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part - in fact, far from it.

Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.

When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.

Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books - ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.

Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.

Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time - he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.

Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon - cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment - spreading the crypto gospel to the rest of the world.

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