Almost every major altcoin has taken a hit in recent months, and Ethereum was no exception, with its price falling to a 14-month low.
Analysts are now warning that it could be on the verge of further recession, with some floating the idea of a collapse to multi-year lows of around $1,000.
The red days are not over yet?
A prolonged bear market isn’t the only thing suppressing ETH’s valuation recently. like CryptoPotato I mentionedHsiao-Wei Wang resigned from his position as co-CEO and board member of the Ethereum Foundation, and shortly after, the entity became reduced The workforce is 20%.
After a combination of several negative developments, the price of ETH fell to just over $1,500, while its market capitalization briefly fell below $183 billion. This means that for a moment, Tether’s USDT upended Ethereum to become the second largest cryptocurrency. ETH has regained its pride of place, although it is ahead by a small margin.
According to Ali Martinez, the asset traded within a block with significant volume between $1,584 and $1,683, with approximately 4 million coins changing hands. he He claimed Locking in this “identified area” as support could open the door to the next major supply sets at $1,980 and $2,079.
At the same time, the analyst warned that missing this baseline (as happened just hours ago) could lead to a deeper decline to $1,237 and even $1,089.
User X Ryker also shared his predictions, Prediction It fell to $1,260 before a potential rise above $3,000. Merlin the merchant Highlight Predictions, noting that Ryker is the only trader followed by Changpeng Zhao (CZ) on X.
Previous forecasts
Earlier this month, X user Ted opinion ETH will likely reach the bottom of its cycle before Bitcoin (BTC). At the time, he claimed that most of the bearish liquidity had been eliminated, predicting a drop to $1,300 to $1,400. For his part, Niels expects a drop to $1,200 sometime this year.
Recent whale activity reinforces bearish expectations. X Max Crypto User open One major investor opened a $68 million short position on ETH with 23x leverage, while Justin Wu opened… shown That four OG wallets started shedding their holdings.
Whales are known as experienced market participants who may have inside information about upcoming events that may affect the price. That’s why their efforts are closely watched by retail investors who may panic and cash out their money as well.
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