Ethereum (ETH) has experienced a significant price dip, hitting $1,540 in the past 24 hours. This marks the first time it has touched this level since March 12, 2023. The drop in Ethereum’s value is a result of a recent surge in pessimistic sentiment, mainly due to the impending FTX asset liquidation, injecting approximately $192 million worth of Ether into the market.
The crypto bear market rally has also faced challenges in the latter part of the year.
Bears are Tightening Their Grip
Examining Ethereum’s price movement, the market intelligence platform Santiment suggests that bearish forces could gather steam in the coming weeks. Santiment’s analysis indicates a movement of substantial amounts of idle Ether in recent days, signaling potential advantages for bears.
This aligns with the common observation that asset prices tend to decrease when the mean dollar age decreases.
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Long Traders Might Be In for Disappointment
Ethereum’s price decline has been disheartening for long traders who had hoped for a rally above $2,120 following the Shanghai upgrade earlier this year. With the confirmed bearish trend in August, it’s probable that Ethereum’s price will continue to decrease, possibly revisiting the bear market lows of around $1,000 seen in 2022. As long as the weekly death cross between the 50-day and 200-day moving averages remains in place, Ethereum’s price is expected to remain trapped in a bearish sentiment.
However, Ethereum, known as the leader in smart contracts and the DeFi ecosystem with a total value locked (TVL) of over $20 billion, might find temporary support around $1,372.
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What is your price prediction for Ethereum in the next few months?