In the last couple of days, the second largest cryptocurrency has lost its crucial trading level of $1,600 and had plunged to $1,400 levels. However, at the time of reporting Ethereum has slightly moved upwards by 5.03% over the last 24hrs and is trading at $1,555.
On the other hand, one of the Bloomberg analysts presented his technical analysis claiming that the lead altcoin would soon drop to $1,000 for the first time in two months.
One of the reasons that the analysts give is the increase in market volatility and many other factors that are pointing toward a correction. Among such factors is Ethereum’s price crunch below the 50-day moving average and this is the area that stands between bulls and bears. It’s also important to note that this is the second time that Ethereum has seen a breakdown from this level and this is not a good sign.
Is Ethereum worth $1,000?
The next factor after the above moving average is the stochastic metric. It is the indicator that differentiates between the current price of the currency and the earlier movement of a particular price area and is used to know the future market sentiment. Now, according to the stochastic indicator of Ethereum, the price of ETH will see a decline for a long time.
During such a bearish momentum, Fairland Strategy, an analytic firm, claims that it is expected that Ethereum will bottom at $1,000 in the near future. For Ethereum to fall at this level, the currency needs to drop by 35% from its current level.
Fortunately, it is still unclear what could cause such significant selling pressure on Ethereum in just a few days, given the efficient testing of the merge upgrade and the absence of technical issues.
The last time this happened, Ether lost about 40% of its value in a matter of days due to the UST disaster, which caused the market to consolidate for a month. Despite ongoing macroeconomic problems that affect both financial markets and virtual currencies, the sector is currently still generally quiet.
