The Ethereum price continues to disappoint investors who expected that the second-largest cryptocurrency by market cap would have hit new all-time highs alongside Bitcoin crossing $100,000. However, this has not been the case as Ethereum has reversed violently and returned to levels not seen in five years. Even with so much value lost already, expectations remain that the ETH price still has a lot of falling to do, as crypto analysts continue to predict violent crashes.
Ethereum Price Headed For $1,400
In a post on TradingView, crypto analyst TradeNation outlined the possible directions that the Ethereum price could go from here. Mainly, the important level is the $1,724 level, which the crypto analyst points out would be the crucial deciding factor for the cryptocurrency. This is essentially the make-or-break point for Ethereum and will likely see a battle from bulls and bears for control.
This level has become a major resistance for the Ethereum price after the price decline in the last few months. It means that if there is to be any type of sustained breakout, then the Ethereum price would need to completely clear this resistance and turn it into support in the meantime. Then the next major resistance moves to $1,840, with $1,926 on the horizon.
However, if the bulls fail to clear this level and the bears successfully reject it at this level, then a continuation of the downtrend should be expected. The first target in such a decline is the $1,409 level. This is where the first support is expected to form in a downtrend. Then, in the case of a complete break, the crypto analyst sees the Ethereum price crashing further to $1,350 and then $1,265 in the long term.
Still Locked In Bearish Sentiment
The entirety of the crypto market is currently very bearish, but sentiment on the Ethereum price is even worse due to its poor performance. The crypto analyst points out that this bearish sentiment is actually being reinforced by the downtrend, since Ethereum has failed to make any notable moves this time around. If sentiment does not improve, then sell-offs could continue and ETH could plummet further.
On-chain metrics have also shown a lack of interest in the Ethereum blockchain. For example, Bitcoinist reported that ETH gas fees have dropped to 2020 levels, the lowest they have been in five years. Ethereum whales have also been leading the sell-off trends, dumping more than 143,000 ETH in a single week. These poor on-chain metrics and the sell-off trends suggest that the decline may be far from over.
Featured image from Dall.E, chart from TradingView.com
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