Ethereum (ETH) is now on a full downtrend. The coin has breached several crucial support zones and fell below $2500 for the first time in weeks. The decline follows a broader sell-off in the market, and it is likely that more losses are coming. Here are the main takeaways:
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ETH is now firmly in a bearish trend and could lose $2000 in the coming weeks.
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A trend reversal appears unlikely, and ETH holders appear to be selling fast.
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If the coin loses $2300, there will be sharp declines thereafter.
Data Source: Tradingview
Ethereum (ETH) – is there any hope?
Growing fears of stagflation in the US appear to be driving much of the selloff in crypto. Investors are also processing the news that the US economy could slow significantly this year and even head into a biting recession.
Under such economic conditions, we expect Ethereum and the broader market to be highly volatile in the medium term. While the overall outlook for Ethereum in the longer term remains positive, the coming few weeks will be brutal.
After losing two key support zones of $2800 and $2500, ETH is now hovering dangerously close to its next support of $2300. This zone has held strong so far. But it’s very hard to imagine the price action will remain above $2300 for long. As pressure mounts, ETH will likely fall below $2300 and soon after, the coin could spiral below $2000 in no time.
What next for Ethereum investors?
Most Ethereum investors have always held the coin for the long haul. There is no reason to panic. This dip was largely expected. If you are still a believer in crypto, then ETH is one coin you cannot afford to ignore. Even with the recent sell-off, ETH could still end 2022 higher than it started. But in the weeks ahead, we expect the coin to fall sharply.