Almost every major altcoin has taken a beating in recent months, and Ethereum is no exception. Its price plunged to a 14-month low, hovering just above $1,500. Analysts are now warning that it could be on the verge of another crisis, with some floating the idea of a crash to a multi-year low of around $1,000.
The red days may not be over
The prolonged bear market hasn’t been the only thing holding back ETH’s valuation lately. As reported by CryptoPotato, Hsiao-Wei Wang has resigned as co-executive director and board member of the Ethereum Foundation. Shortly after, the entity reduced its workforce by 20%.
Following these negative developments, the price of ETH fell to just north of $1,500, while its market cap briefly fell below $183 billion. For a moment, Tether’s USDT toppled Ethereum to become the second largest cryptocurrency. ETH has regained its prestigious position, albeit by a small margin.
According to analyst Ali Martinez, the asset traded inside a crucial volume block between $1,584 and $1,683, where nearly 4 million coins changed hands. He claimed that gaining support in this specific area could open the door for the next big supply clusters at $1,980 and $2,079. At the same time, he warned that losing this benchmark (as happened just a few hours ago) could lead to a deeper fall to $1,237 or even $1,089.
Another X user, Ryker, shared his outlook predicting a decline to $1,260 before a potential rally above $3,000. Merlijn The Trader highlighted this prediction, noting that Ryker is the only trader followed by Changpeng Zhao (CZ) on X.
Previous predictions
Earlier this month, user X, Ted, opined that ETH was more likely to hit its cycle bottom before Bitcoin. He claimed that most of the downward liquidity had been removed, projecting a decline between $1,300 and $1,400. Another analyst, Niels, sees a drop to $1,200 this year.
Recent whale activity reinforces the bearish outlook. User Max Crypto revealed that a large investor opened a $68 million short position in ETH with 23x leverage. Justin Wu pointed out that four OG wallets have started to dump their holdings.
Whales are known as experienced market participants who may hold inside information about upcoming events that could influence prices. This is why retail investors are closely monitoring their movements and might also panic sell. The combination of price weakness, management changes, layoffs, and whale bets suggests that Ethereum’s problems may not be over.
