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HomeNewsBrace Yourself: Analysts See Ethereum Dipping to $2500 Soon!

Brace Yourself: Analysts See Ethereum Dipping to $2500 Soon!

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  • Due to strong bearish trends and weak market fundamentals, analysts believe Ethereum may soon drop to $2500.
  • Due to their close relationship, Ethereum’s decline might impede Bitcoin’s ascent and have an impact on the entire cryptocurrency market.

Ethereum (ETH) is at the forefront of the major fall now affecting the cryptocurrency market. At $2,906.11, ETH has been down 3.98% in the past 24 hours, bringing its weekly loss to 7.55%, according to CoinMarketCap. This bearish trend raises concerns about its future prospects and short-term stability.

ETH Bearish Sentiments Echo Across the Market

The second-biggest cryptocurrency by market cap, ETH, is struggling with weaker fundamentals in addition to market volatility.

Ethereum’s uneven performance in current market cycle, in sharp contrast to its typical function as a trigger for positive trends, has analysts at 10X Research raising concerns about the possibility of a low of $2,500.

ethereum
Source: 10x Research

The Unbreakable Link Between Ethereum and Bitcoin

A recent study with an astounding R-square of 95% demonstrated the strong correlation between ETH and Bitcoin.

This implies that the decline of ETH may have an immediate effect on the performance of BTC, therefore impeding the capacity of the larger cryptocurrency market to draw in fiat money.

Sector Professionals Weigh Notably, Ethereum is underperforming technically and fundamentally, according to Daniel Yan of Kryptanium Capital.

He issues a caution that Ethereum may swiftly drop into the $2,500–$2,600 zone if the price falls below $2,950, which would exacerbate the problems facing the market.

New Dynamics in Network Activity

With a move toward Ethereum Layer 2 solutions, which last month accounted for an amazing 82% of all Ethereum transactions, the mainnet of Ethereum is witnessing less activity. This change in usage of Ethereum’s network is mostly the result of reduced transaction costs.

Not insignificant changes are also taking place in the ETF scene. The staking component was eliminated from ARK Invest and 21Shares’ spot ETH ETF application lately, in line with what ETHNews previously disclosed.

Perhaps in response to possible comments from the Securities and Exchange Commission (SEC), this streamlining aims to expedite the clearance process.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Syofri
Syofri
Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628
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