As selling pressure continues in the cryptocurrency market, market analyst Joao Wedson warned investors that the price of Ethereum (ETH) could fall to $1,200. Wedson stated that the short pos
As selling pressure continues in the cryptocurrency market, market analyst Joao Wedson warned investors that the price of Ethereum (ETH) could fall to $1,200. Wedson stated that the short positions of large investors and the high risk of liquidation in the market are increasing the pressure on Ethereum.
Joao Wedson stated that a drop in the Ethereum price to $1,200 would not be surprising, and explained the reasons behind this expectation.
According to the analyst, large investors (whales) trading on various cryptocurrency exchanges are positioning themselves for further declines in the Ethereum price. Wedson noted that every price drop triggers large-scale liquidations, creating new selling pressure and deepening the decline even further.
Wedson argued that there is a significant amount of long (bullish) positions, particularly in the price range extending up to $1,200, that carry a risk of liquidation. The forced closing of these positions with a price drop could lead to increased selling pressure on Ethereum.
On the other hand, the analyst noted that there are significant liquidation levels above the current price. However, he said that if the whales driving the market continue to expect a decline, investors who have taken long positions may continue to suffer losses.
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Joao Wedson also compared the negative outlook for Ethereum to that of Bitcoin (BTC).
According to the analyst, the situation in the Bitcoin market is less complex compared to Ethereum. Wedson noted that while bullish positions still dominate in Bitcoin in the short term and there is a significant risk of liquidation, Ethereum has a much more unfavorable risk-return profile under current conditions.
*This is not investment advice.
Continue Reading: Renowned Analyst Issues Warning About Ethereum: “Whales Are Watching This Level”
