Ethereum Price Forecast: Will It Soar or Plummet?

Analyst Ali Martinez shared his assessment of what the rate of the second largest cryptocurrency by capitalization Ethereum ( ETH ) could be in the short term. In his opinion, if the asset can hold the key support level of $2,500, then its value could rise to $4,000 or even $6,000.

At the same time, the expert pointed out that if the $2,500 level cannot be maintained, then there is a high probability that the cryptocurrency will fall to $1,700. According to him, it no longer matters much whether the asset is deflationary or inflationary in its structure.

The key question is whether the above level, where 12.18 million wallets have purchased ~63 million ETH, will hold. According to Martinez's observations, investor capital continues to flow from Bitcoin and Ethereum to stablecoins, while there is no sign of an alt season.

According to his assumption, the Ethereum network will soon face increasing competition from alternative blockchains, which could weaken the position of one of the first blockchains. Despite the growth of the cryptocurrency market, the share of Ethereum in its total capitalization has decreased to the minimum level in the last few years, the analyst noted.