Market Watcher Predicts an ETH Drop to $800 Should the Asset Fail to Consolidate at $1,700

Prominent crypto analyst iI Capo of Crypto has forecasted a fall to the $800 level if Ethereum fails to consolidate above the $1,700 zone.

iI Capo of Crypto recently took to Twitter to predict a local bottom of $700 – $800 for Ethereum (ETH), supposing the asset flops in its journey to capture the $1,700 area. Additionally, he highlighted the fierce resistance ETH will likely face at $1,700, noting that the price point is crucial to the asset’s performance in the coming days.

“$1700s is a very important resistance zone for Ethereum. $700-800 is likely if it can’t consolidate above that resistance zone,” the accomplished crypto trader noted in a recent tweet, following a rejection faced by the asset at the $1,600 zone.

$ETH zoomed out

$1700s is a very important resistance zone for Ethereum.

$700-800 is likely if it can't consolidate above that resistance zone. https://t.co/WbdNVVKqxB pic.twitter.com/ueHMrF7MNs

— il Capo Of Crypto (@CryptoCapo_) November 2, 2022

Following a month of massive underperformance, ETH started a campaign demonstrating its resilience against the bears as the markets saw the latter days of October. Ethereum dropped to points below $1,250 before staging a comeback as October closed.

The asset rode on this recent rally, as it began November on favorable grounds despite facing rejection at $1,650 on October 29. The asset has held above the $1,500 support level, but iI Capo of Crypto believes the dark days might materialize sooner than the community expects.

iI Capo’s built his latest forecast on a previous analysis he made, asserting a “hard” rejection should ETH manage to touch the $1,700 territory. The last time ETH traded above $1,700 was mid-August, when the asset nearly claimed the $2,000 area before facing a fierce rejection.

On the other hand, ETH has not revisited the $800 price point since December 2020. The lowest the asset has crashed to this year is at $900. This means iI Capo’s prediction would see Ethereum at its lowest price point in this cycle should it materialize.

Meanwhile, the recent relief rally on which several assets rode to massive highs appears to have lost its steam. Most crypto assets seem to have shed their gains in the past 24 hours, as the community anticipates reports from the upcoming FOMC.

Consequently, several analysts have forecasted an ETH dip, but not as much as iI Capo has predicted. Furthermore, a CryptoQuant analysis highlighted a monetary decrease in the use of Ethereum derivatives, indicating a pattern of position closures from investors.

Ethereum currently trades at $1,560 as of press time, with a slight decrease of 0.74% in the past 24 hours. The asset has shed 1.46% of its value in the past week. Notwithstanding, the Exchange Netflow indicator shows low net deposits on exchanges compared to the past week.

Despite the dominance of long positions in the ETH derivatives market, the U.S. Coinbase Premium Index indicates a low buying pressure on American institutional investors, as the asset records a shortage of investor interest in funds.