See More

Altcoin Apocalypse Predicted, Analyst Sees ETH Potentially Falling to $1,000

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Matrixport analyst predicts an impending "Altcoin Crash," with Ethereum possibly falling to $1,000.
  • Ethereum prices remain close to the critical $1,600 level; another break could lead to lower prices.
  • ETH has dropped to its lowest price since mid-March and lost 4% over the past two weeks.
  • promo

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. 

Ethereum Price in USD 1 Month. Source: BeInCrypto 
Ethereum Price in USD 1 Month. Source: BeInCrypto 

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.

Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell

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. 

Bitcoin Price in USD 1 Month. Source: BeInCrypto
Bitcoin Price in USD 1 Month. Source: BeInCrypto

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 projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

profile.jpg
Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
READ FULL BIO
Sponsored
Sponsored