After the cryptocurrency market collapsed in January, some assets closed the month in the red. This includes Ethereum, the second-largest cryptocurrency by market capitalization, which went below 27% from December.
While Ethereum (ETH) has already seen positive returns in February, the potential of a price crash remains. The price of ETH might drop as low as $1,700, according to Bloomberg. Experts believe, however, that Ethereum’s bullish fundamentals will be preserved.
Ethereum May Follow Last Year’s Price Trend
Bloomberg has warned that it is pessimistic on Ethereum (ETH). Bloomberg experts anticipate that Ethereum might fall to as low as $1,700 in their latest Intelligence report. The drop, however, could be followed by an upward correction.
According to Bloomberg, Ethereum (ETH) could follow in the footsteps of last year’s June to September price movement, and fall below current levels to reach the aforementioned price. The report reads:
“Ethereum could repeat last summer and revisit about $1,700. Once the weaker leveraged long positions were purged, the resolution was a new high around $4,800 in November. Ethereum approaching the lower end of its range has greater risks for shorts than longs.”
Led by senior commodity strategist Mike McGlone, the analysts noted that the ETH market is in a consolidation phase near the end of a bull market. This is evidenced by the fact that the market has benefited both buyers and sellers by trading in the $2,000 to $4,000 price range.
A bear storm usually affects long positions more than short positions. However, Bloomberg notes that the impact of this bearish shift will be worse for Ethereum shorts than for bullish holdings in this situation.
Regardless, the analysts point out that Ethereum’s optimistic fundamentals remain intact, thus a price drop below $1,700 would be bullish for the cryptocurrency overall. It may even be essential, as it was last year, to cleanse “weaker leveraged long positions.”
According to Bloomberg, the second most valuable cryptocurrency has a strong long-term outlook. It compares Ethereum’s fundamentals to those of Bitcoin, which is predicted to break through $100,000 in the near future due to dwindling supply and rising demand. The report added:
“Ethereum’s fundamentals are similar, with straightforward technical guidance and buyers prevailing at about $2,000 and sellers around $4,000.” .
Ethereum and Bitcoin are projected to continue rising unless “something stops the spread of the nascent technology.” This is due to the fact that both cryptocurrencies are still considered to be in their early phases of acceptance.
Ethereum Price Turn Green
Currently, the price of Ethereum appears to be downplaying the issue. In the previous few days, the price of ETH has surpassed $3,000, a gain of roughly 19.7%. At the time of writing, ETH was trading at roughly $3,190, up 3.22% on the day.
Ethereum is trading in the green, along with several other altcoins, as the market recovers from last week’s losses. Ethereum has gained about 20% in the last seven days, making it the best performer among the top five Cryptocurrencies in terms of market capitalization.
ETH/USD 24-hours charts. Source: TradingView
Finder.com, a savings website, predicted a price of $7,609 for Ethereum later this year, but still expects it to decrease to $6,000 by the end of the year due to market competition.
Meanwhile, Vanessa Harris, Permission’s chief product officer, claims that the asset will lose a significant amount of value. By 2030, she expects Ether to be worth $100.
Her arguments are supported up by suspicions that Ethereum’s move from a Proof-of-Work to a Proof-of-Stake blockchain will not solve the problem of network congestion, which has resulted in high fee costs for network users in the past.
Ethereum is trading in the green, along with several other altcoins, as the market recovers from last week’s losses. Ethereum has gained about 20% in the last seven days, making it the greatest performer among the top five Cryptocurrencies in terms of market capitalization.
Related article | Vitalik Buterin On How To Eliminate Ethereum Network Congestion
Featured image from Deposit Photos, chart from TradingView.com