Ethereum falls by over 30% in less than a week – What next?

Ethereum falls by over 30% in less than a week – What next?

Like most major coins in the market, Ethereum has seen a massive sell-off over the last week or so. The coin is down about 30%, and as sentiment in the market takes a risk-averse approach, this decline is far from over. So, where does ETH go from here? More analysis later in the post but first, check out these highlights:

ETH has fallen below $1300 for the first in 18 months

A fall below $1,000 is likely and could trigger a huge sell-off

Momentum in the market appears very limited, and ETH will remain suppressed.

Data Source: TradingView

Where does Ethereum go now?

At the moment, there isn’t a lot of good news coming from crypto. As most coins sell-off, we do not see any signs that the downtrend will ease. If anything, this could be the beginning of a very difficult period for crypto in the near term. So, we expect ETH to continue sliding. 

There will be some fake-outs in between where the coin rallies a bit. But overall, the trend will push downwards. It will be very interesting though to see the kind of resilience ETH shows at $1000. Losing $1000 will be a huge setback for the coin, and bulls must defend this price at all costs.

Nonetheless, if ETH can reclaim the $1300 support in the coming days, perhaps a massive met down will be avoided. So far, the coin is down 15% over the last 24 hours.

Is the crypto bull run over?

When major coins like ETH start to fall sharply, they often weigh down the whole market. 2021 was one of the best years for crypto. But it is now clear that 2022 will be the year of corrections. 

ETH is likely going to face more pressure but could still close the year above $5000. It all depends on how investor sentiment develops in the coming weeks.

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