The resurgence of the cryptocurrency market has stalled once again as Bitcoin cools its gains in recent days. Meanwhile, most altcoins traded in the red did the same. Prices are now heading below critical supports once again. According to the latest analysis from Jarvis Labs, this scenario threatens the Ethereum price with $400.
If this scenario happens, Ethereum price will drop to $400
There is a critical signal that will drop the price of the leading altcoin to $400. Analysts disagree on whether the upcoming Ethereum merge will be bullish or bearish. According to the Fear and Greed Index, it was on the “severe fear” side, which set a record 70-day in investor sentiment.
More broadly, the cryptocurrency market is looking for a trigger to reverse the negative momentum. Currently, only Ethereum Merge seems to have this capacity. If so, it is likely that the market will continue to trend sideways or continue to decline until the expected Merge date of September 19th.
What is the future for Ethereum?
Comprehensive analysis for the future of Ethereum was provided by research firm Jarvis Labs. The crypto-focused research firm recently released its “ETH 30-day return outlook” report. This analysis uses the 30-day return measure to “evaluate the short-term profit and loss of the overall market at a given time.”
According to the chart above, the 30-day returns for Ethereum are currently “moving towards 0% after being noticeably negative since April.” From here, we understand that the market becomes more optimistic as Ethereum Merge approaches.
$400 for ETH?
This forecast comes from Ethereum’s price movements in the fourth quarter of 2018. ETH consolidated in the $200 region before dropping to $82 in December. A repeat of this pattern marks $400 for ETH by December 2022. Analyst Delme Wilson writes in a recent article:
On the other hand, a return of 1700 from resistance to support will equate to a return of around $350 and will mark the start of a new bull run.
Jarvis Labs advised investors to be cautious as “short-term gains to $1,400-1,700 are possible”, as they are “likely to face a significant sell-off.”
On the other hand, Ethereum-based products have witnessed an ‘enhanced’ sentiment over the past three weeks. Meanwhile, long-term investors used this opportunity to better understand the market. According to Glassnode data, the number of addresses holding more than 10 (ETH) has reached 149,448 for 16 months’ ATH.
Ethereum (ETH) is currently trading just under $2,000. It was slightly decreasing compared to the last 24 hours and 7 days. You can find out what you need to know about Ethereum Merge, which we prepared as Kriptokoin.com.
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