The second-largest cryptocurrency rose by 2% over the past 24 hours, thus once again jumping beyond the $2,500 milestone and adding fresh fuel to analysts’ prevailing bullish outlook.

However, not everyone shares that optimism, with one market observer warning of a potential 40% collapse ahead.

Modest and Ridiculous Targets

ETH’s increase to approximately $2.5K seems to be a major turning point for the asset. X user Gerla claimed a clean break above that mark could mark the beginning of a new bull run, while losing the rising support may hamper the overall uptrend.

Ted spoke on the matter when ETH briefly climbed to the resistance zone of $2,550. In his view, a weekly close above that level could result in a further surge to $3,000. Shortly after, he suggested that a daily close beyond might be followed by a 10%-15%.

KriptoXI also believes Ethereum is at “a make-or-break” level, predicting a spike to $2,800 if the asset clears $2,550. At the same time, a plunge below $2,400 could weaken bullish momentum and trigger a deeper pullback.

Of course, there are some who envisioned an “up only” scenario from here on. Crypto Patel pointed to striking parallels between ETH’s current path and past market cycles, opining that if history repeats, the next target could be beyond $20,000. Not long ago, Credible Crypto also floated the idea that the asset’s valuation might be headed toward such a parabolic increase.

Prepare for a Crash?

X user Nonzee, who recently claimed that BTC’s rally could be abruptly ended by a violent decline toward $45,000, expects a similar scenario with ETH. The analyst described the asset’s breakout to $2,500 as a trap, adding that the price must first retest $1,500 before starting a bull run to $4,500.

“That drop will look like the entire structure has failed. It will actually be the final shakeout that completes it,” they said.

Ethereum’s Relative Strength Index (RSI) serves as a warning for such a potential correction. The ratio has jumped to 77, meaning the asset has entered overbought territory and could be gearing up for a move south. The technical analysis tool ranges from 0 to 100, where anything below 30 is interpreted as a bullish zone.

Source: CryptoPotato