Leading altcoin Ethereum (ETH) is at the mercy of the bears and the rest of the market. It’s an ongoing trend in this cycle. The unyielding bear market has hit Ethereum hard. A Bloomberg analysis predicts it will drop below $1,000 for ETH despite the recent rebound from weekend lows.
Bloomberg predicts a crash for the leading altcoin
Bloomberg technical analysts expect the ETH price to drop further. This is largely due to altcoin price volatility in a bearish market condition. “Technical indicators of momentum and price trends suggest that the coin will continue to decline from its peak of around $2,000 in mid-August to the current region of $1,500,” the Bloomberg report says.
ETH could drop below $1,000However, sentiment in the Ethereum community continues to rise due to the upcoming Merge. Meanwhile, ETH has been vastly outperforming Bitcoin lately. On the other hand, this did not give the asset any immunity to recent unfavorable macroeconomic conditions.
Ethereum had formed promising support at its 50-day moving average. However, after the market slump, the asset fell below this support. It also pointed to the risk of further collapse. Katie Stockton, Fairlead Strategy’s financial advisor, highlighted these risks. He also noted the bearish signal of the weekly stochastic, which fell for the first time in 5 months. In its review, Bloomberg writes:
Ethereum dropped below initial support from its 50-day moving average. Short-term momentum is now negative, increasing downside risk. Weekly stochastics fell for the first time since April. This indicates that support has been approximately retested. It is likely to be $1,000 in the coming days.
ETH hits August lows on Monday
cryptocoin.com As you follow, after a 2-month high of $2,022 on August 14, Ethereum has sustained a sustained decline to $1,535. Despite this bearish pressure, the altcoin was well above the $1,500 support zone. ETH saw some gains from August 22 to August 25, reaching $1,718. This aid rally was short-lived, however, when it soon encountered hostility.
As the market declines began on August 25, ETH dipped below the $1,500 support the next day. The negative speech of Fed Chairman Jerome Powell made the whole situation worse. ETH dropped as low as $1,429 on Monday. This marked the lowest level in August.
The leading altcoin has made some promising moves since then. But these are likely to hit an obstacle soon. If Bloomberg analysts’ prediction comes true, ETH could see itself below the main $1,000 support for the first time in two months. ETH has gained 1.69% in the last 24 hours at the time of writing and is currently trading at $1,560.
