Key Points
- Ethereum’s price has seen a decline of almost 9%, currently trading at $2,460 from a previous peak of $2,696.
- Analysts are split on Ethereum’s next move, with some anticipating a rebound and others predicting further losses.
Ethereum’s price has experienced a significant drop, mirroring the recent sharp decline of Bitcoin.
In the last 24 hours, Ethereum has lost nearly 9% of its value, pushing its price down to $2,460 from a peak of $2,696 just a day earlier.
Analysts’ Predictions
The market performance of Ethereum has led to a wave of analysis and speculation among cryptocurrency experts, with differing views on the future of the second-largest cryptocurrency by market capitalization.
Crypto analyst Anup Dhungana has suggested the potential for further downside in Ethereum’s price.
Dhungana’s analysis indicates that if the current downturn continues, Ethereum could form a double bottom pattern at the $2,200 support level, a pattern often seen as a bullish reversal signal.
However, this scenario relies on Ethereum not breaking through the $2,200 support, which could lead to further losses.
Another analyst, ‘The Cryptomist’ on X (formerly Twitter), has offered a different perspective, warning against becoming too bearish at this stage.
Ethereum’s Fundamentals
Beyond technical analysis, Ethereum’s fundamentals present mixed signals.
Data from Glassnode shows that Ethereum’s number of active addresses has fluctuated over the past month, with a recent decline potentially indicating a decrease in network activity.
Meanwhile, Ethereum’s Open Interest data from Coinglass reveals a decrease of 7.42% over the past day, suggesting that traders are closing positions due to uncertainty or lack of confidence in the short-term price direction.
However, Ethereum’s Open Interest volume has seen a significant increase, rising by over 100% to reach $38.97 billion.
This surge in volume, despite the decrease in Open Interest, indicates a heightened level of trading activity, possibly driven by speculative moves in response to the recent price drop.
High trading volumes often lead to increased price volatility, meaning Ethereum could experience further sharp movements in the near term.
