The price of Ethereum is uncertain following a $238 billion wipeout; will it drop by 50% next?
Due to recent pressure, Ethereum’s market value has dropped by an astounding $238 billion. Investors are now unsure of ETH’s future after this steep drop. While some analysts anticipate a possible recovery, others caution that Ethereum may experience a more severe drop—possibly as much as 50%—as a result of significant profit-taking by major holders.
Reports state that several factors, including market-wide corrections, regulatory uncertainty, and large sell-offs by cryptocurrency whales, contributed to Ethereum’s recent decline. According to Coingape’s study, significant Ethereum holders have started liquidating their holdings, which has heightened selling pressure. The likelihood of a further price decline is increased if this trend persists and ETH finds it difficult to maintain its important support levels.
Technical signs also point to possible dangers on the downside. Ethereum has dropped below important support zones, according to analysts, and if selling pressure persists, it may lead to a series of liquidations. At worst, ETH might drop another half of its value before leveling off.
Not everyone, though, is pessimistic about Ethereum. Since Ethereum’s fundamentals are still solid, several analysts think that this decline can offer a buying opportunity. With advancements in fields like layer-2 scaling solutions and decentralised financing (DeFi), the network is still widely used. Long-term investors also contend that ETH has recovered from comparable declines in the past and that market corrections are normal in the cryptocurrency space.
So, what’s next for Ethereum?
ETH may rebound and regain important price levels if buyer confidence rises and selling pressure subsides. However, Ethereum’s price may fall significantly lower before reaching a steady bottom if whales keep selling and the market is still erratic.
The market is giving conflicting signals, therefore everyone is watching to see what Ethereum does next. Will it rise again or fall? Investors are keeping a close eye on things.
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