Ethereum (ETH) continues to be a focal point in the cryptocurrency world as one of the most promising projects. As the second-largest cryptocurrency after Bitcoin, Ethereum holds a significant role in the future of digital finance. However, the cryptocurrency market is always unpredictable.
Ethereum: Current State
Analyst Alan Santana recently provided his insights on the current state of Ethereum and the potential future price movements. Despite being the second-largest cryptocurrency by market capitalization, ETH remains an altcoin. This signifies high volatility and unpredictability in the market. "We have observed the bullish potential and growth capacity of this and other projects," said Santana. However, he also reminded that we are currently in a correction phase, necessitating consideration of bearish aspects. Santana questions how far Ethereum can drop before we see its bullish potential again. The current correction reflects a broader market trend, and while corrections can be worrisome, they might be part of a longer journey towards a future price increase.
Technical Analysis and Trends
Santana also discussed various technical indicators that show Ethereum is currently in a bearish state. One of the main indicators he mentioned is the weekly MACD, which shows a bearish divergence that has been ongoing for over three years. This is the worst condition seen since January 2022, when the bear market started gaining momentum. Additionally, the weekly RSI also exhibits bearish signs with a nearly four-year divergence. According to Santana, the new baseline level for ETH price is around $1750 to $1550 – the level where Ethereum was trading in October 2023 before the last bullish surge.
Impact of ETF on Ethereum Market
In addition to the technical indicators, Santana highlighted the potential impact of the Ethereum Spot ETF. He noted that large institutional players are attempting to enter the market and plan to buy Ethereum at around $1000 to $1200 – levels where Ethereum was trading in November 2022. Santana pointed out that while this price seems very low, some altcoins are already at that level, and Ethereum, currently just an altcoin, has underperformed the market recently. "One day we're casually sitting at our computers, the next day we watch a crash bringing prices lower than anticipated," he added. Despite the gloomy short-term prospects, Santana remains optimistic about Ethereum's long-term potential. "Ethereum could easily surpass $10,000 after this correction period," Santana stated.
While the short-term outlook for Ethereum appears bleak, analysts remain hopeful about its long-term potential. Only time will tell how far the price can drop before a new growth cycle begins.
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