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  /  cryptocurrency   /  Ethereum Might Drop to US$700! Experts Warn About Crypto Meltdown Ahead
Ethereum

Ethereum Might Drop to US$700! Experts Warn About Crypto Meltdown Ahead

Analyst warns about another Ethereum implosion, only negative skepticism revolves around the market

The Ethereum price reached above US$1,150 this June 19, marking 30%-plus gains in just two days. However, at the beginning of the new weekly session this June 20, the ETH/USD pair hinted at giving up its weekend gains, with its price plunging by almost 9% from the US$1,150 high. PostyXBT, an independent market analyst, told his 79,800 followers to be careful about the latest ETH price rally, noting that the move “would make for a clean fakeout.” The statements appear as Ether, alongside other top cryptocurrencies, including Bitcoin (BTC), Solana (SOL), and Cardano (ADA), have entered a bear market.

ETH/USD now trades 77% below its US$4,951-record high, but some tokens are down 90% from their 2021 peak levels. Concerns about the Federal Reserve’s hawkish policy to tame inflation has stoked these sell-offs, hurting parts of traditional stock markets in tandem. In detail, the U.S. central bank plans to hike benchmark rates in 2023, which may leave investors with lesser liquidity to buy riskier assets like BTC and ETH. Additionally, forced selling and liquidity troubles led by the so-called decentralized finance, or DeFi, sector have added downside pressure on the crypto market, thus limiting Ether’s prospects of continuing its recovery rally moving forward. Analyst “Capo of Crypto” states that ETH has not bottomed out yet and that its price could fall further toward the US$700–US$800 range.

 

Ethereum 2.0 has Failed to Make an Impression

Several crypto investors have almost lost hopes for Bitcoin regaining back its value and rooted for ETH to take over the crypto market. Since the Ethereum 2.0 upgrade is due for its launch, it is quite expected for Ethereum to upsurge in value, but it currently seems like investors are hardly curious about it anymore. Even after the Ethereum Merge upgrade is expected to be launched this year itself, the current volatility of the market has made things worse Ethereum and the Ethereum 2.0 upgrade are nowhere near causing any hype in the market.

Recently, crypto experts reported that Ethereum 2.0 might not be a hit and instead will turn out to be just the opposite of what everyone is expecting. Crypto fanatics generally tend to appear more enthusiastic when the market is producing a new launch. Back in 2021, the price of Bitcoin skyrocketed after the first Bitcoin Futures ETF was approved by the SEC in the US. But unfortunately, Ethereum’s upgrade has failed to cause such a buzz in the market and is experiencing massive sell-offs by its investors. It is quite evident that investors are spooked by the continuous blows from the market, one after the other.

Ethereum price is following an atypical pattern, with bulls using a lot of juice to push price-action back up to near US$1,243.89. The question is whether bulls have not already burned too much cash in trying to reach that level instead of letting price action dip and scoop up below US$1,000. The situation is now becoming unsustainable for both parties, and a breakout is due.

 

Is Ethereum a worthy investment right now?

ETH price could rally steadily back towards the aforementioned US$1,243.89 hurdle again. With the dollar trading sideways and backing off a bit, a small pop above could even materialize. Going into the weekend and with fewer restraints, a test of US$1,400 could be in the making but bear in mind that the background has not changed fundamentally, and any profit needs to be treated with caution. There is a risk, of course, that headwinds could flare up and the ferocious dollar’s strength could return, squeezing out bulls from their positions. This push could be proven one too many and lead to a break of US$1,000, which could then trigger, in turn, an exodus of investors to get out of the way of the bearish steamroller that will squash price action towards US$830.93. This means a 25% decline added to the descent.