Ethereum Price Crash Warning: $1060?
Concerns are rising among investors and analysts as Ethereum (ETH) shows a prolonged bearish trend. Recent technical analysis suggests a potential price drop to as low as $1,060. This prediction is supported by several factors, including weak market structure, a lack of bullish momentum, and negative on-chain data.
Ethereum's Repeated $4,000 Resistance Failures
Price analysis by Mags shows Ethereum's inability to breach the $4,000 resistance level three times this cycle. Each rejection triggered further price declines, pushing ETH below its mid-range and under an upward-sloping trendline support. Analysts warn that failure to reclaim $2,500 soon could accelerate the decline towards $1,060, the range low. This lack of significant support points towards a sustained bearish trend.
Source: X
Market data shows persistent bearish pressure on Ethereum. The absence of a clear bottom formation increases the risk of extended losses. Without a strong recovery above resistance levels, the downtrend is expected to continue.
ETH/BTC Pair's Bearish Trend
The ETH/BTC trading pair also reveals Ethereum's relative weakness against Bitcoin. The three-day Relative Strength Index (RSI) is below 30, often indicating oversold conditions; however, history shows oversold conditions haven't always marked a definitive bottom. Since mid-2024, ETH/BTC has seen multiple breakdowns, with declines of 13%, 21%, 25%, and 19.5%. The 50-day and 200-day Exponential Moving Averages (EMAs) are trending downwards, further confirming the bearish outlook. Analyst CarpeNoctom notes the absence of a bullish divergence on the weekly chart, suggesting further price struggles for ETH.
Source: X
Declining ETF Flows and Weak On-Chain Activity
US Ethereum-based exchange-traded funds (ETFs) have experienced consistent outflows since the start of the year. In March 2024, spot Ether ETFs saw a 9.8% drop in net assets ($2.54 billion), contrasting with Bitcoin ETFs' slight 2.35% decrease ($35.74 billion). This divergence highlights institutional investors' waning interest in Ethereum. On-chain data shows decreasing network usage, with median gas fees fluctuating around 1.12 GWEI in March 2024—significantly lower than the previous year, indicating reduced transaction volume.
Technical analysts express concern over Ethereum's performance, remaining below key support levels. The next support level is at $1,060, aligning with the lower boundary of its long-term trading range. At the time of writing, ETH is trading at $1,923.03—27.81% lower than last month. Despite a market cap of $231.96 billion, the downward trend points to sustained selling pressure.
Disclaimer: This analysis reflects market conditions at the time of writing. Conduct thorough research before making any investment decisions. Codeum is not liable for any financial losses.