Recent technical indicators and on-chain data suggest potential challenges for Ethereum, with the price possibly falling to $1600.
Causes of Ethereum Price Decline
According to Bit Bull's report, Ethereum is in a retest phase after its price fell from a symmetrical triangle formation. Decreasing trading volumes create a bleak outlook, encouraging investors to exercise caution. The critical support level at $1800 raises concerns about the possibility of further sharp declines.
CITE_W_A: "Post-breakdown and retest, Ethereum is likely to face a more substantial drop. Following the retest towards the upper trend line, I predict the price will move downward again."
On-Chain Data Supporting the Downward Trend
On-chain metrics further corroborate the bearish outlook for Ethereum. Recently, there has been a noticeable decrease in the number of active addresses, along with declining transaction and burned fees, indicating a downward market trajectory.
Current Market Conditions and Forecasts for Ethereum
Current trading volumes are around $7 billion, and movements by large entities can significantly affect Ethereum’s price, contributing to market volatility. Maintaining the $1,800 support level is crucial for potential recovery. A recent forecast from Standard Chartered even posits that Ethereum could potentially reach $4,000 by year-end if the support level holds.
Monitoring market activity closely is essential for investors, especially given the technical and on-chain data pointing to possible volatility. A breach of key support levels could trigger broader declines in price.
