Summary
Ali Martinez stated that Ethereum's inability to reclaim the critical resistance at $4000 could lead to a more painful price drop to $3500 or even lower.
In contrast, other analysts remain optimistic about its future trajectory, noting that the fourth quarter and first quarter are about to occur, which have historically been very bullish periods for ETH and other altcoins.
Another rejection at $4000?
Remember that the second largest cryptocurrency surpassed the $4700 mark just two weeks ago. Although it began to decline in the following days, it maintained a level of $4500 by last Monday when the crisis erupted. In about an hour, the value of Ethereum dropped by more than $400, falling below $4100.
After a failed recovery attempt, it quickly stopped at $4200, and the value of Ethereum dropped again. This time, the decline was sharper, as the currency fell to its lowest level in several months at $3830 (on the Bitstamp platform).
The bulls finally regained their presence at this point and did not allow for further collapse. However, they seem to lack much strength, as Ethereum could not decisively break through the critical resistance level at $4000.
If the asset indeed fails to break this level in the next few days, the risk of the price dropping to $3500 becomes more likely, according to Martinez.