Ethereum (ETH) Price Prediction: Analyst warns of a potential ‘worst-case scenario’ ahead

TLDR

• Ethereum (ETH) dropped over 20% in two days, falling from near $4,000 to around $3,000, marking its lowest level since mid-July.
• The crash triggered nearly $1 billion in liquidations across leveraged ETH derivatives markets, mostly wiping out traders betting on higher prices.
• Crypto analyst Ali Martinez predicts ETH could fall as low as $1,700 by mid-2026 in a worst-case scenario, representing a 46% decline from current levels.
• BitMine, the largest ETH treasury firm, appears to have exhausted its buying power after accumulating 3.4 million ETH and now sits on roughly $2 billion in unrealized losses.
• 10x Research analyst Markus Thielen warns ETH could slide to $2,700-$2,800 as ETF flows, retail interest, and treasury demand have collapsed.

Ethereum has experienced a sharp decline over the past two days. The second-largest cryptocurrency by market cap fell more than 20% from its position near $4,000 early Monday.

By Tuesday afternoon, ETH touched levels just below $3,000. This marked the token’s weakest price point since mid-July.

The token was trading just above $3,200 at press time. It remained down 9.4% over the past 24 hours after a modest bounce.

This crash mirrors a similar event from October 10. During that flash crash, ETH dropped 25% in a single day, falling from just below $4,500 to $3,440.

The current decline has had severe effects on leveraged traders. According to CoinGlass data, over $970 million in liquidations occurred across ETH derivatives markets during the two-day period.

Most of these liquidated positions were long trades. These traders had bet on higher prices but were wiped out as ETH broke through multiple support levels.

The broader crypto market has also suffered losses. Over $1 billion was erased from the total crypto market cap in the last 24 hours. The overall market cap fell more than 5% to $3.36 trillion.

Bitcoin also declined during this period. BTC slipped below the $100,000 price point on November 4 before recovering, ending the day down 6%.

Analysts Predict Further Downside

Crypto analyst Ali Martinez shared a bearish prediction for Ethereum’s future. In his worst-case scenario, ETH could fall as low as $1,700 by mid-2026.

Martinez’s analysis suggests ETH will fail to reclaim the $4,000 price mark. He believes the token cannot sustain momentum from the support level around $3,800.

His chart shows a possible decline to $2,400 or even $1,700 toward mid-2026. If this prediction comes true, ETH would drop 46.4% from its current price.

Markus Thielen from 10x Research issued a similar warning. He stated that ETH’s breakdown leaves little support below current levels.

Thielen sees the $2,700-$2,800 range as the next likely landing zone. His analysis points to several factors driving the decline.

Treasury and Demand Collapse

BitMine, the largest ETH treasury firm, appears to have exhausted its buying power. The firm accumulated nearly 3.4 million ETH over recent months.

Thielen estimates BitMine’s cost basis at around $3,909 per token. At current prices, the firm is sitting on approximately $2 billion in unrealized losses.

While BitMine faces no immediate liquidation risk, Thielen questions who will step in as the next buyer. The firm’s buying spree had helped support ETH prices during its rally to nearly $5,000 in August.

ETF demand has also dried up. Inflows reached $9.5 billion in July and August when BitMine was actively purchasing. Since then, flows have collapsed.

Only $850 million has exited ETH ETFs since the October crash. This leaves room for more selling as many ETF investors are now underwater at current price levels.

Retail interest has fallen dramatically. Google search trends for Ethereum have dropped to just 13% of their peak levels.

Despite the current decline, Ethereum co-founder Vitalik Buterin remains optimistic about the network. He recently praised Ethereum’s “incorruptibility” and scaling progress. The blockchain network allegedly hit 3,453 transactions per second recently.

ETH remains the second-largest cryptocurrency with a market cap of $382 billion. The token has still gained 30% over the past year despite recent losses.

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