Possibility of Ethereum dropping below $2,000
After a prolonged decline in early 2022, the Ethereum price recently recovered and returned to the $3,000 mark per coin. However, according to Cointelegraph data, the bearish sentiment in the cryptocurrency market could lead to a more severe correction of Ethereum.
Key support levels may not hold
Analysts believe that if key support levels do not hold, the Ethereum price may retreat to $1,850 per coin. This is 38% lower than the current values and significantly below the psychological $2,000 mark. Such a drop would mean a resumption of the bearish trend in the largest altcoin, which would have a negative impact on the entire cryptocurrency ecosystem.
Maintaining bullish sentiment depends on macroeconomics
The recovery of Ethereum to $3,000 was associated with the general restoration of investor interest in risky assets against the backdrop of easing geopolitical tensions. However, the continuation of these bullish sentiments will largely depend on the development of the macroeconomic situation, primarily the actions of the US Federal Reserve to combat inflation.
Conclusion
Despite the recent growth, Ethereum is still under pressure and may face a deeper correction down to $1,850 per coin. Maintaining the bullish trend will depend on the overall investor sentiment, which in turn is linked to the macroeconomic situation. Crypto traders and investors should closely monitor the development of events.