• Analyst CryptoKaleo predicts that Ethereum value will drop to $1,600 earlier than rising in the direction of $2,400.
• The worth drop will signify a retest of the pre-LUNA/UST liquidation breakdown stage.
• Equally, the analyst expects Bitcoin to dip in the direction of $24,000 earlier than rallying to $40,000.

The crypto analyst who goes by CryptoKaleo on Twitter predicted that Ethereum value will fall to $1,600 earlier than rising in the direction of the $2,400 value area. In line with Kaleo, the value drop will signify an extra take a look at of the breakdown stage forward of the liquidation of LUNA/UST.

Kaleo defined its place by utilizing an ETH/USD each day chart to focus on a few of Ethereum’s key value behaviors for the reason that center of 2021. Occasions highlighted by Kaleo embrace Ethereum’s value rise from July to November 2021, when the value of ETH surged in the direction of the value of $4,700. stage after rebounding from the $1,600 area.

Kaleo’s chart evaluation revealed that the height of the rally represents the beginning of a downtrend that prolonged by March 2023. It additionally expressed horizontal assist, which was resistance, given the present value of ETH.

After breaking above the trendline that marks the downtrend, Kaleo believes that ETH value will consolidate and pull again to retest the horizontal assist established a couple of yr in the past. This assist got here within the wake of the notorious LUNA crash in Might 2022. The over $2 billion takedown of UST triggered the LUNA crash. In consequence, traders shortly liquidated lots of of thousands and thousands of investments.

In line with Kaleo, ETH will bounce off this assist to rally at resistance at $2,400. The analyst additionally famous that the value of Bitcoin would transfer in an identical trajectory to Ethereum by dipping in the direction of the $24,000 value area earlier than rallying to retest the $40,000 value area.

On the time of writing, the value of ETH has damaged under native assist at $1,787 and is buying and selling at $1,761. A drop decrease may see the flagship altcoin fall to the following assist at $1,687, confirming Kaleo’s cheaper price prediction.