Key Points
- Ethereum’s price is under severe selling pressure, trading just above the crucial support level of $2,400.
- Market analyst Justin Bennet predicts that Ethereum could crash to $1,000 if it fails to hold this support.
Ethereum’s price has been experiencing a significant decline, with a nearly 20% drop over the past month. Currently, it is trading just above a critical support level of $2,400.
Crypto market analyst Justin Bennet has predicted that if Ethereum does not maintain this support, its price could plummet to $1,000.
Ethereum’s Price Movement
Bennett has presented a chart tracking Ethereum’s price action within a long-term logarithmic channel dating back to 2017. It shows that Ethereum is currently testing the lower boundary of this channel, which has contained its price movements since mid-2022.
Despite reaching a high of $2,855.23 during the recent two-week trading period, Ethereum has failed to maintain momentum above the crucial $2,800 level. This indicates that the cryptocurrency is at a critical support zone.
Bennett has pointed out that Ethereum’s price action lacks upward momentum, suggesting that if it fails to hold this support, a correction to $1,000 could be imminent.
Ethereum ETF Outflows
In addition, Ethereum ETF outflows have surged, with US ETFs recording four consecutive days of outflows. In the first two days of this week alone, more than $128 million have flowed out of Ethereum ETFs. This suggests that institutional interest in Ethereum is declining amidst its recent underperformance.
Despite the selling pressure and major headwinds, some crypto market analysts remain optimistic about Ethereum’s price recovery. For instance, Crypto analyst Wolf has noted that Ethereum has returned to the lower end of its 13-month re-accumulation range.
Wolf predicts that Ethereum could revisit the $4,000 mark in the second quarter of the year, which could signal the start of a new bull market for the asset.
Crypto analyst Ted Pillows has highlighted a significant development in Ethereum’s evolution, pointing to the SEC’s acknowledgment of Grayscale’s proposal to incorporate staking into its spot Ethereum ETF. He believes that institutional money could flow into the ecosystem “like crazy” once the integration is approved.
