Ethereum, the second-largest cryptocurrency, is struggling amid declining investor sentiment, potentially paving the way for a market turnaround.
Sentiment Hits Rock Bottom
Market intelligence platform Santiment reports that social media discussions around Ethereum have reached their most negative level in a year. Analysts suggest that such negative sentiment historically precedes price rebounds, especially once market conditions stabilize. Unrealized profits for significant ETH holders, known as 'whales,' have also declined.
Market Performance
At the time of writing, ETH is trading at about $2300, marking a 3% increase in the last 24 hours but a 3.6% drop over the past week. Over the past 12 months, the token has shed about 40% of its value. Ethereum's struggles are also attributed to broader market trends, including macroeconomic uncertainties and regulatory pressures.
Analysis and Forecasts
Analysts have predicted the possibility of the price dipping below $1200, particularly in light of recent market turmoil that resulted in close to $600 million in liquidation losses.
Despite the negative sentiment, Ethereum might offer growth opportunities for investors, especially considering potential market stabilization and subsequent price increases.
