ETH Price Slumps as Analysts Warn of Potential 40% Drop

Ethereum's recent surge has brought it near $2,465, but analysts are warning of potential price drops. The cryptocurrency was rejected at a key resistance level of $2,513 and closed with a nearly 2% decline.

The MACD indicator has flattened out at the highs of its recent run, suggesting that buyers may be losing steam. Meanwhile, the RSI is hovering in the upper 70s, typically seen as an overbought condition.

Retail traders are heavily betting on higher prices, with a 70.3% long position, while smart money is less optimistic at 56.6%. A significant gap of 14 points between these two groups is being closely watched.

Analysts see a 60% chance that ETH will drop to either $2,415 or $2,365 before any breakout. In the bull case, with a 40% probability, ETH would need to close above $2,513 on strong volume, potentially opening the door to targets of $2,562 and $2,632.