“Could we go below $1,200? Maybe,” one analyst said.
The second-largest cryptocurrency was severely damaged by the prolonged bear market, closing the second quarter firmly in the red. What is even more striking is that this is the third consecutive quarter of losses for ETH – something unprecedented in the history of the asset and a clear signal of the persistence of the current downturn.
Analysts believe bulls may have to endure more pain in the near future, with some predicting a price drop as low as $1,000.
Bears take total control
It was last August that ETH reached a new all-time high of almost $5,000. Since then, it has headed south and is currently trading at around $1,560 (per CoinGecko), which is a whopping 70% drop from the all-time high.
Weak market conditions and seasonal factors suggest that the asset could see another fall in the near term. It should be kept in mind that July has rarely been a favorable month for Ethereum, as it has ended the period in the red six times out of the last ten times.
The analyst who goes by the moniker He paid particular attention to the $1,700 level, saying that if the asset fails to recover it, the probability of hitting a new low will increase significantly.
Crypto with Haris ₿ responded to the increasingly popular predictions that ETH could plunge to $1,000 during this cycle, adding that such an extreme bearish scenario is much less plausible than many fear.
“Ethereum has already been one of the hardest hit major coins this cycle and is now building a solid base around the $1,500-$1,600 area. Even with a further push from Bitcoin, I think the realistic downside is around $1,200-$1,300. Could we go below $1,200? Maybe. But I think the risk of trying to get to that exact level is much higher than people think,” he said.
Meanwhile, recent whale behavior reinforces the bearish outlook. Ali Martinez revealed that large investors sold around $900 million worth of ETH in a single week, while analytics platform Lookonchain reported that an anonymous market participant cashed out nearly 2,500 coins, resulting in a significant loss of $4.33 million.
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Some bullish signals
However, all is not doom and gloom for Ethereum. The number of coins stored on crypto exchanges remains quite close to the ten-year low recorded in June: a development which reduces selling pressure.
Additionally, ETH’s Relative Strength Index (RSI) continues to hover around 30, indicating that the asset has entered oversold territory and may be poised for a rebound. The technical analysis indicator ranges from 0 to 100; anything above 70 is considered a warning of an impending pullback.
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