Ethereum price is closing to mirror Bitcoin’s recent performance, and as Bitcoin price is in a downtrend, ETH price is following suit. However, Ethereum itself appears to have more bearish fundamentals compared to Bitcoin, leading cryptocurrency analysts to believe that the second-largest cryptocurrency by market capitalization will fall further.

Ethereum ready for further collapse

A cryptocurrency analyst known as Shin Forex visited TradingView to participation engaging analysis of the Ethereum price. The analysis, which focused on the ETH/BTC chart, revealed some disturbing changes in the ETH price.

The analyst explained that liquidity in Ethereum is decreasing during this time. Instead of flowing towards altcoins like ETH, it is instead flowing towards Bitcoin. This suggests a growing disinterest in Ethereum from investors, and as liquidity flows into Bitcoin, Ethereum currently has nothing to support it.

Additionally, the cryptocurrency analyst explains that the ETH/BTC pair has currently broken below the support at 0.05. Now this drop below the support level is significant considering what happened each time it was broken. Shin Forex points to the last two market cycles, one in 2016 and one in 2019, when ETH/BTC broke below support.

In both cases this occurred and the price then fell before it could rise again. The cryptocurrency analyst doesn’t expect it to be any different this time and believes ETH/BTC will drop below 0.04. If this happens, it will cause Ethereum to spiral upwards, and the analyst has set a price target of around $2,500.

Can the ETH price survive the crash?

According to a cryptocurrency analyst, Ethereum’s price doesn’t look too good in the miniature term, especially since the altcoin is currently trending lower within its current channel. However, moving away from a broader time frame can aid you get an idea of ​​how the ETH price may behave after a crash.

Looking at the Shin Forex chart showing the last two times this pattern occurred, it also set a precedent for money to flow into Ethereum again. In November 2016, the price dropped, but within a few months there was a huge rebound as ETH/BTC rose to a novel record high.

Source: TradingView.com

A similar situation occurred next time in 2019, when the market crashed before the market rose, although this time at a slightly slower pace. So if this trend continues, an ETH crash is inevitable. However, a recovery is expected and will likely usher in another massive surge.

For now, bears continue to dominate the Ethereum market and have successfully brought the price below $3,000. Trading takes place at According to Coinmarketcap, it stands at $2,975 at the time of writing, with a slight decline of 0.36% in the last day.

ETH price falls below $3,000 | Source: ETHUSD on Tradingview.com

Featured image from Quora, chart from Tradingview.com