After posting the new 2020 high recently at $444.58, the world’s second-largest cryptocurrency Ethereum (ETH) faced a pullback. The price value of ETH has now come down to trade around the $400 mark. Where Ethereum’s price value is heading downward with a change rate of -3.80% in 24 hours, a cryptocurrency analyst has claimed that the second-ranked digital currency may see a further massive drop in its price value within the duration of the next twelve months.
ETH Price could dip down by 50%
Cane Island Alternative Advisors’ Timothy Peterson has predicted in a tweet that Ethereum may dip down in the coming months. According to Timothy Peterson, the price value of Ethereum’s ETH could drop by 50% in the duration of the next twelve months.
Furthermore, the cryptocurrency analyst Peterson found out while analyzing Ethereum technically that the long-term growth rate of Ethereum’s ETH “only supports an average annual price appreciation of 30%”.
Peterson explained his Ethereum’s analysis in these words via Twitter:
“Pessimistic about #Ethereum price for the foreseeable future. Long-term growth rate only supports average annual price appreciation of 30% per year. $ETH could lose 50% in the next 12 months.”
If the prediction of Timothy Peterson proves right and Ethereum’s Price value faces a drop of 50% in the coming twelve months, then the second-ranked digital currency may enter into a long-term bearish trend which is what ETH holders would not want to happen.
ETH price analysis: A strong resistance of $450 lies ahead
Currently, the price value of ETH is residing in the $400 zone but with a slightly bearish sentiment that is referring to a price drop. Ethereum’s price is facing a strong resistance of $450 standing right in front of it. The coin is making attempts to break this resistance in order to carry on its previous rally towards $500.
Last time when ETH tried to sneak through this price resistance level it faced a pullback. The coin needs to sustain the support of $400 in order to break this massive resistance.