- Ethereum’s price at $4,470 is a crucial support zone, offering technical confluence for potential bullish movement.
- Citigroup forecasts a bearish trend, suggesting Ethereum could drop to $4,300 due to weakening base-layer activity.
- A drop below $4,470 would confirm a bearish outlook, with Ethereum potentially targeting the $4,300 support zone by year-end.
Ethereum’s price has reached a crucial point, holding steady at $4,470, a level that previously served as resistance but is now being tested as support. This region is seen as a significant turning point for cryptocurrency, as it has a high level of technical confluence. However, analysts caution that a breakdown below this level could lead to a deeper correction, with Ethereum potentially dropping to $4,300 by the end of the year.
$4,470 Support Zone Holds Critical Importance
Ethereum’s price action has found itself at a decisive point at the $4,470 level. This price zone, which acted as resistance in the past, has now turned into a critical support level after being reclaimed by bulls. The level has significant technical weight due to its overlap with the volume profile and the point of control (POC). As such, traders are closely monitoring whether Ethereum can hold above this level or face further downside pressure.
Source: TradingView
If Ethereum fails to maintain support at $4,470, the next major technical level of support lies at $4,300. This price point is backed by multiple technical factors, including the range point of control, value area low, and the 0.618 Fibonacci retracement. Should Ethereum close below $4,470, the bearish outlook would be validated, potentially bringing Ethereum closer to the $4,300 region by the end of the year.
Citigroup’s Bearish Forecast: Ethereum at Risk of Falling to $4,300
Citigroup analysts have issued a bearish forecast, projecting that Ethereum could fall to $4,300 by the end of the year. Their analysis points to weakening activity on Ethereum’s base layer, with only 30% of network usage flowing through Ethereum itself. In contrast, Layer 2 solutions are capturing a larger share of activity, leading Citigroup to warn that Ethereum’s price could be trading above its intrinsic value, increasing the risk of a correction.
While the bearish outlook is gaining traction, Ethereum’s bullish case remains intact as long as the price holds above $4,470. If Ethereum can maintain this support level, there is a possibility that the cryptocurrency could see a rebound and build a base for a move toward its yearly highs. However, traders remain cautious, as a decisive drop below this level could trigger further downside action, with $4,300 as the next significant support area.
