Ethereum (ETH) is having a tough time. It’s been struggling to break above $2,100, and actually dropped 6% last week. Experts are saying it’s in a crucial period, and we might see more sideways movement before a big price change.
Ethereum’s 2023 Performance: A Rough Year So Far
Ethereum ended its worst first quarter since 2018. It’s been bouncing around between $1,775 and $1,925. While there was a brief recovery, it ultimately closed Q1 down 45.4% from its January high and 18.6% from its March high – its worst performance in seven years. Four months in a row of price drops is also a first since 2018.
What the Experts Are Saying
Several analysts have weighed in on Ethereum’s current situation:
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Daan Crypto Trades: Thinks ETH is in a “no man’s land,” with the key levels being a break below $1,750 (bad) or above $2,100 (good). Anything in between will just be frustrating.
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Merlijn The Trader: Points out that ETH is trading at 2021 levels, similar to before its all-time high. He believes that strong fundamentals and increased institutional interest could lead to a much higher price. Holding onto ETH could lead to $10,000, but losing this support could be bad news.
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VirtualBacon: Predicts more sideways trading in the short term. He sees the current price as a good value, but doesn’t expect an immediate breakout. However, he’s bullish in the long run, believing a breakout is just a matter of time, especially if the Fed changes course and global liquidity increases.
Whale Activity: A Concerning Sign?
Ali Martinez highlights a significant drop in large ETH transactions – down 63.8% since February 25th. This decrease in whale activity, along with the sale of 760,000 ETH in the last two weeks, is a potential cause for concern.
The Bottom Line
As of now, Ethereum is trading around $1,903. While the short-term outlook is uncertain, several analysts remain optimistic about its long-term potential. The next few weeks will be crucial in determining whether ETH can break out of its current range.
