The bearish trend continues to increase for Ethereum (ETH), the native token of the Ethereum Blockchain. ETH traded around $1,290 during the day, which is the lows of July. However, some analysts believe that the largest altcoin by market cap will fall below these levels. Some analysts expect prices to drop between $750-$850 in the coming months. Here are the details…
Analyst: Ethereum at support level
According to cryptocurrency analyst Crypto Capo, ETH price has reached the next level of support at the current price. Based on this, the analyst pointed out that the market is experiencing demand intensity or buying interest. Therefore, he expects ETH’s Head & Shoulders (H&S) technical pattern to show a slight jump that will test the neckline. Following this, a local bottom awaits the ETH price for several months. According to the analyst, there will be a sell-off that will bring ETH down to the primary target price of likely $750-850.
The analysis comes after the ETH price took a hit from both the “news-based selling” and the US Federal Reserve (FED) rate hike pressures. As Cryptokoin.com reported in our previous articles, Capo predicted that Bitcoin would see 22-month lows last month. Following the analyst’s prediction, BTC dropped to $16,000. In addition, the analyst shared critical levels such as $ 50,000 and $ 3,500 in BTC with his followers over the years. It is currently appearing with a bearish ETH analysis. However, Crypto Capo’s is not the only bearish forecast for ETH.
Experts are pessimistic about the ETH market
In a TIME report, several analysts also pointed to pessimism for the ETH market for various reasons. Venture capitalist Kavita Gupta predicted that ETH would fall as low as $500 if broader market selling deepens. At the same time, crypto market analyst Wendy O. also expects ETH to drop 85 percent from its all-time high of $4,800 to $750.
ETH bulls remain in the market despite the bearish trend of the second largest cryptocurrency. According to the same TIME report, several analysts expect ETH price to close 2022 at its previous high. Some are even hopeful that it will set new highs in 2023. Ian Balin, investor and founder of crypto research and media company Token Metrics, used the following statements:
I believe Ethereum can hit $8,000. Ethereum is the clear leader, but other blockchains are grabbing new users because of Ethereum’s high gas fees and low transaction speed.
What does the option data show?
Options data noted by crypto and blockchain analysis firm Glassnode shows that traders are equally optimistic about the rise in ETH price. According to Glassnode’s report, although the Merge is complete, traders have not yet closed their positions in the derivatives market.
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