The second-largest cryptocurrency was hit hard by a prolonged bear market, closing the second quarter firmly in the red. Even more surprising is that this marks the third consecutive quarter of losses for ETH – unprecedented in the history of the asset and a clear indication of how long the current downturn will continue.
Analysts predict that the bulls may have to endure more pain in the near future, with some predicting prices to collapse to as low as $1,000.
The Bears are in complete control
Last August, ETH rose to a new all-time high of around $5,000. Since then, it has gone south and is currently trading at around $1,560 (per CoinGecko), which represents a massive 70% decline from the historical peak.
Weak market conditions and seasonal factors indicate that the asset may decline further in the short term. One must keep in mind that July has rarely been a favorable month for Ethereum, as it has ended the period in the red six out of the last ten times.
An analyst who uses the nickname Ted X male ETH has been holding up better than BTC recently, but cautioned that the former is not out of the woods yet. He paid special attention to the $1,700 level, arguing that if the asset fails to reclaim it, the probability of reaching a new low will rise significantly.
Encryption with Harris ₿ Directed The increasingly popular forecast is that ETH may fall to $1,000 during this cycle, adding that such an extreme negative scenario is much less plausible than many fear.
“Ethereum has actually been one of the hardest-hit major currencies this cycle and is now building a strong base around the $1,500-$1,600 area. Even with Bitcoin flowing again, I think the realistic downside is between $1,200 and $1,300. Can we get below $1,200? Maybe. But I think the risk of trying to get to that exact level is much higher than people realize.”
Meanwhile, recent whale behavior reinforces bearish expectations. Ali Martinez open Major investors sold around $900 million worth of Ethereum over the course of one week, while analytics platform Lookonchain I mentioned An anonymous market participant cashed out approximately 2,500 coins, resulting in a significant loss of $4.33 million.
Some bullish signals
However, it’s not all doom and gloom for Ethereum. The number of coins stored on cryptocurrency exchanges remains very close to the ten-year low recorded in June: a development that reduces selling pressure.
Moreover, the Relative Strength Index (RSI) for ETH is still hovering around the 30 level, indicating that the asset has entered the oversold zone and may be on its way to a rebound. The technical analysis indicator ranges from 0 to 100; Anything above 70 is a warning of an impending decline.
this post Ethereum (ETH) Sets a Historically Negative Record: Is There More Pain Ahead? appeared first on CryptoPotato.
