Ethereum (ETH) has been having a rough time since last month. Over the past week, it has dropped 16%, hitting $1,861 today from an intraday high of $2,138. This is its lowest since December 2023. The question everyone is asking is, will ETH ever recover from this?
According to Glassnode, only 50% of Ethereum holders are still making a profit, compared to 82% at the start of the year.
Some investors are losing their funds, while some are choosing to sell at a loss, which is causing the price to fall.
Looking at the monthly chart on TradingView, the price is not doing great. It has been trading below the Ichimoku Cloud since January 25, a sign that the market is still bearish.
Meanwhile, $1.8 billion worth of ETH left exchanges in the biggest outflow since December 2022 last week, according to Lookonchain.
Usually, when investors move ETH to private wallets instead of exchanges, it means they’re holding for the long term. This could signal a potential price rebound soon.
Will Eth Crash to $1300?
If Ethereum’s price continues to fall, it could hit $1,300, which is another support level on the monthly time frame.
But if demand picks up, ETH could climb back to $4,045, which is a 120% surge from its current price level. However, this is uncertain as the market is still controlled by the bears.
As of now, the most likely scenario for ETH is to test the support at $1700; if it fails, there would be catastrophic liquidations, and the market will need a hard time to recover.
Also Read: Bitcoin Falls Below $80k As Trump’s Reserve Plan Spark Volatility: Here is Why
