Ethereum, the largest altcoin, has lost 15% in price. This is due to global economic challenges and reduced investor interest.
Reasons Behind Ethereum’s Decline
Ethereum has been on a steady decline for the past three months. Its weak performance against Bitcoin indicates a drop in investor interest. Macroeconomic uncertainties, inflation concerns, and weak stock markets have also contributed to this downturn. Open positions in Ethereum futures have decreased by 10.8%, falling to $18.8 billion. Furthermore, $209 million worth of positions were liquidated in the last 24 hours.
Is This Ethereum’s Worst First Quarter Ever?
Ethereum has dropped 36% since the beginning of the year, potentially marking its worst first quarter in history. Analyst Venturefounder noted that if the altcoin falls to $1,600, it would demonstrate the worst first-quarter performance ever recorded. Even during the bear market of 2018, such a severe decline was not witnessed.
Future Prospects and Potential Support Levels
The nearest support level for ETH is at $2,020. If the price dips below $2,000, it risks falling to $1,880. A deeper sell-off could see prices decline to $1,750 and potentially to the significant support level of $1,640. For some analysts, a drop to $2,000 could present a long-term buying opportunity. It is believed that investors looking to enter at lower levels may return, but market indicators continue to signal negativity.
Ethereum is going through tough times, and its future will depend on overall market conditions and network activities. Investors will watch closely and react to changes in market dynamics.
