Ethereum’s Bearish Fundamentals
Ethereum’s price has been closely following Bitcoin’s downward trend. However, analysts believe that Ethereum has weaker fundamentals, suggesting a further decline.
Liquidity Concerns
Crypto analyst Shin Forex points out that liquidity is flowing away from Ethereum and towards Bitcoin. This indicates waning investor interest in Ethereum.
Support Break
The ETH/BTC pair has broken below its support level of 0.05. Historically, this has led to price crashes in Ethereum.
Target Price: $2,500
If the ETH/BTC pair falls below 0.04, Forex predicts a significant drop in Ethereum’s price to around $2,500.
Long-Term Outlook
While the short-term outlook for Ethereum is bearish, Forex believes that a recovery is possible after the crash.
Historical Precedents
In the past, Ethereum has experienced similar crashes followed by market rallies. Forex expects this trend to continue.
Current Market Conditions
Ethereum is currently trading below $3,000, with bears dominating the market.
