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Ethereum fell by 1.87% on Wednesday to relinquish $1,200 price level
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Ethereum price is ailing from the weak sentiment in the crypto sector
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The price faces further slump although it has some stability
Looking to buy Ethereum (ETH/USD) in the new year? Probably waiting a little longer would help. Ethereum is yet to find a bullish footing, and further downsides are possible. The recent price action shows it, but it is not outright.
Trading down 1.87% on Wednesday, Ethereum had slipped below the $1,200 price level. The loss is not unique to the second-largest cryptocurrency. All the cryptocurrencies in the top 10 by market cap were in the red. That probably tells that although crypto fans may wait for 2023 with enthusiasm, it may still be too early to jump into the ship.
Ethereum is a cryptocurrency with huge potential, considering that it trades at just four times lesser value than its 2021 highs. Then, the merge happened this year, and the blockchain transited to the proof of stake protocol. Yet again, the price has failed to take off. Perhaps, we should take the words of the co-founder Vitalik Buterin that we should focus on the technology rather than price. But to crypto speculators, price matters most. What crypto enthusiasts want is when is the next bull run. The answer is plain, not yet! The price action below shows.
ETH sliding below the support-turned resistance
On the technical outlook, Ethereum is sliding into a consolidating market. However, the cryptocurrency is in a bear market with weak momentum. ETH also trades below the $1,250 support zone. The $1,100 continues to support the price and prevent bears from crashing below $1,000.
What next for ETH?
The price outlook for ETH is slightly bearish. However, $1,100 is the level to watch should bear pressure mount. A break below the support would see ETH fall further lower.
On the flip side, bulls must recover above $1,250 to consider the further upside for Ethereum price. For buyers, it could be crucial to wait for a bullish momentum.