Gold Price Flash Warning Signs: Expert Predicts Imminent Crash if Critical Level Breaks
Gold may be on the brink of a major correction, according to crypto and macro analyst EGRAG CRYPTO, who issued a stark warning on X (formerly Twitter) that a crash could be imminent if the yellow metal closes above a key Fibonacci level.
The critical threshold to watch: $3,405, corresponding to the Fib 0.702 level on the chart. If gold were to post a 3-day candle close above this level, EGRAG argues it could signal not just a market reversal, but the onset of systemic instability on a macroeconomic scale.
“Such a move would indicate major systemic instability—worse than we anticipated—or suggest we are heading into something even more severe than the Covid crisis, possibly a mini-world war,” the analyst stated.
EGRAG’s chart outlines an Elliott Wave-style structure suggesting that gold may be nearing the top of a major wave cycle.
His forecast includes a potential sharp drop to around $2,063, marking a substantial correction of over 35% from the highs near $3,400. The technical roadmap implies a steep ABC corrective pattern ahead if the projected reversal plays out.
The warning comes at a time of increasing geopolitical tension and monetary policy uncertainty. Gold’s recent surge has been driven by inflation hedging, central bank demand, and investor flight to safety — all factors that, if reversed sharply, could exacerbate volatility.
The analyst urges investors to stay alert, noting that a shift of this magnitude could have broader implications beyond the commodities market, potentially spilling over into global risk assets and signaling distress in traditional financial systems.
Key Levels to Watch:
- $3,405 – Fib 0.702 resistance; a close above may trigger systemic risk signals
- $2,063 – Downside target if reversal unfolds
- $2,661 and $2,422 – Intermediate support zones
- $1,966 – $1,925 – Deeper correction zone based on Fib cluster
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
