Is Ethereum doomed for a further fall? While Bitcoin blazes a trail above $111,000, Ethereum remains open to a 42% decline, a scenario that\'s becoming increasingly plausible according to some analysts. Ethereum has experienced a massive drop, losing over 27% of its value in less than five days as the market faces extreme fear and uncertainty. The rapid sell-off has fueled speculation that a steeper correction is coming.
ETH has plummeted more than 63% since December, sparking concerns the cryptocurrency may be in trouble. Analysts blame the decline on “subdued network activity,” a significant factor contributing to the negative outlook. Despite the broader crypto market’s resurgence, Ethereum remains approximately 45% below its previous peak, highlighting its underperformance compared to Bitcoin and other altcoins.
The sentiment around Ethereum (ETH) has reached its lowest annual level, according to an analysis by the blockchain data company Santiment, published on March 6. This deeply pessimistic sentiment further fuels concerns about the short-term prospects for ETH. Ethereum’s native token, Ether (ETH), continues losing its strength against Bitcoin (BTC), with the ETH/BTC pair treading around 0.0365 BTC as of Oct. 25, its lowest level in months, suggesting a lack of confidence in ETH relative to BTC.
Short-Term Bearish Outlook: The market sentiment is negative, with Ethereum facing a potential decline to $1,500, as key support levels have been broken and no clear signs of reversal are present. Could this pessimistic prediction materialize? The breaking of crucial support levels lends weight to this possibility. Adding to the uncertainty, "Ethereum podría entrar en un nuevo ciclo alcista frente a Bitcoin después de caer al objetivo del patrón IC&H, el cual se alinea estrechamente con el escenario bajista." This statement, pointing to a potential bullish cycle following a bearish pattern, highlights the conflicting signals and increased volatility surrounding Ethereum\'s future.
Is a 42% decline inevitable? No one knows for sure, but the combination of negative sentiment, technical indicators, and relative underperformance paints a worrying picture for Ethereum in the short to medium term. Stay informed and manage your risk accordingly.