Ethereum is tanking. The entire crypto market is down, and Ethereum’s price has just plummeted. It lost a major support level at $1,800, dropping about 14.5% in just 24 hours.
A Deep Dive into the Downward Spiral
Things are looking pretty grim. One analyst predicts Ethereum could even fall to $1,000-$1,500. He thinks Ethereum’s current market cap is ridiculously high for an asset with no growth or profits. He believes the hype has died down, and a price drop to that range is long overdue. His prediction seems to be coming true; Ethereum’s market cap has already dropped significantly. Unless things change quickly, a fall to $1,000 is a real possibility.
A Glimmer of Hope: CME Gaps
But here’s a twist. Looking at the CME futures chart, there are three significant gaps in the price action above the current level. These gaps are between:
- $2,550 and $2,625
- $2,890 and $3,050
- $3,917 and $3,933
The theory is that prices often “fill” these gaps eventually. While a quick rebound is unlikely, there’s still a chance Ethereum could climb back up to fill these gaps before the end of the year.
The Bottom Line
Right now, Ethereum is trading around $1,540. The short-term outlook is bearish, with a potential drop to $1,000. However, the long-term possibility of filling the CME gaps suggests a potential price increase to $3,933. Only time will tell which scenario plays out.
