Key Points
- Ethereum’s price may further drop to $2.2k due to declining whale activity and bearish market sentiment.
- The Ethereum network remains a leader in web3 and tokenization despite competition.
The altcoin sector, spearheaded by Ethereum, is indicating a midterm bearish sentiment.
This follows as the price of Bitcoin fell below $96k earlier on Monday, leading the TOTAL 2 market cap to form a bearish flag after retesting the neckline of a double-top correction pattern.
Downward Trend in Crypto Market
The total crypto market cap has decreased around 2.5 percent in the past 24 hours to roughly $3.3 trillion. This is due to the rising fear of a crypto correction, fueled by uncertainties of tariff trade wars led by the United States.
From a technical perspective, Ethereum’s price has been forming a bearish flag. Ethereum’s price has consistently closed below the previous support level of around $3,035, indicating the start of a more severe correction phase.
Ethereum’s price encountered a significant resistance level of about $4k, triggering the current correction.
Ethereum Price Prediction
Crypto analyst Altcoin Sherpa suggests that Ethereum’s price is targeting a support level of around $2,529. If Ethereum buyers cannot maintain the support level around $2,529, it could further drop towards $2,258.
The demand for Ethereum by whale investors has seen substantial fluctuations in recent months. The supply of Ethereum on centralized exchanges (CEXes) has decreased from 16.19 million to about 15.35 million.
Ethereum Network’s Position
Despite significant competition from other layer one (L1) chains, such as Solana, the Ethereum network continues to grow, driven by institutional investors looking to diversify their Bitcoin investments.
Ethereum’s core developers are working on the Pectra upgrade to ensure the network’s relevance and future prosperity. The upgrade will introduce several features to the Ethereum network.
One key feature of the Pectra upgrade is the EIP-7702, which will allow regular Ethereum accounts to function as a smart contract. Another top feature is the EIP-7271, which will raise the validator stake limit from 32 Ethereum units to about 2,048 Ethereum units.
