Ethereum could face a major price drop if the current market trend continues, according to analysts studying the latest trading patterns.
The cryptocurrency is currently trading around $2,000, but technical data suggests the market may be preparing for a bigger move.
Ethereum has been moving inside a large trading range for some time. The upper resistance level sits near $4,800, while the lower support area is around $870.
Earlier, Ethereum tried to break higher but failed near the $4,800 resistance level. After that rejection, the price moved lower and returned to an important zone known as the point of control, where the most trading activity has happened.
This level often acts as a balance point between buyers and sellers. Prices sometimes stay here for a while before the next big move.
However, analysts using Market Auction Theory believe the market could eventually rotate toward the lower part of the range.
If that happens, Ethereum may gradually move toward $870, which would push the price below the important $1,000 psychological level.
For now, Ethereum is trying to hold its current range. But without strong buying momentum, traders say the market could continue drifting lower in the coming weeks.
