As crypto markets sink deeper into the red, analysts are predicting more pain for altcoins, while the outlook for Ethereum price doesn’t look good in the short term. Moreover, total market capitalization has slumped to its lowest point in six months.
Crypto markets have fallen back to levels lot seen since mid-March as the bears tighten their grips on digital assets again.
Potential Ethereum Price Slide Possible
On September 11, Matrixport analyst Markus Thielen published the firm’s latest crypto insights report. It was bleakly titled “The Altcoin Crash is Coming,” predicting big drops for Ethereum and altcoins.
“Ethereum is also turning out not to be ‘ultrasound money,’” he said, referring to issuance creeping higher than burning last week. However, the network still looks very strong fundamentally in the long term.
He added that Ethereum prices remained close to the psychologically important $1,600 level, adding:
“A break could carry prices lower, especially as revenue growth disappoints.”
There was a break lower, with ETH prices dumping to $1,540 in early trading hours on Tuesday.
Moreover, the report added that current levels “make us extremely cautious about Ether here.” It added:
“We could even envision a scenario where prices materially drop lower into year-end.”
Then came the big whammy with a prediction that if ETH drops below $1,500, it could fall as low as $1,000.
“A decline below $1,500 could bring back the idea that Ether could decline to $1,000 – a level that would appear justified based on the revenue projection from the Ethereum ecosystem.”
However, a fallback to $1,000 for ETH is unlikely unless Bitcoin dumps to the cycle-low levels it reached in the wake of the FTX collapse.
BTC and ETH Price Outlooks
On November 22, BTC prices collapsed to $15,800, and ETH followed suit in a dump to $1,100, their lowest levels during the current bear market cycle.
The analyst concluded that both BTC and ETH were bearish after falling below their 50-day moving averages:
“Overall, the trend is down, which indicates a bearish sentiment.”
Ethereum prices have fallen to their lowest level since mid-March. The asset is currently trading down 1.8% on the day at $1,582 at the time of writing.
ETH slumped to a six-month low of $1,539 a few hours ago but managed to recover within a few hours. Overall, ETH has lost 4% over the past fortnight and 14% over the past month.
Top crypto platforms in the US | November 2023
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