fxs_header_sponsor_anchor

Ethereum price hit bottom at $3,118, as bears gather strength in highest pain scenario

  • Ethereum hit bottom at $3,118 earlier today, hitting a five-month low.
  • Based on Santiment data, the ratio of active Ethereum addresses vs. price implies a bullish narrative. 
  • Analysts at JP Morgan believe that Ethereum faces stiff competition from DeFi to maintain its dominance in the ecosystem. 

Ethereum price dropped to a five-month low earlier today. Proponents believe that Ethereum’s dominance in the crypto ecosystem has dropped. 

Ethereum bears push the altcoin’s price lower 

Ethereum price dropped below $3,118 as bears took over the altcoin. Ethereum price hit a new five-month low. Though the altcoin’s market capitalization exploded in 2022, analysts have predicted that Ethereum’s dominance in the market could shrink this year. 

According to the average market value to realized value (MVRV), the current price is the most pain that Ethereum traders have felt since July 2021. The metric is obtained by dividing an asset’s market capitalization by realized cap. Average MVRV implies a bullish outlook on Ethereum price. 

Ethereum’s average MVRV

Analysts at JP Morgan believe that Ethereum is competing with DeFi protocols to maintain its dominance. The leader in financial services believes that a delay in sharding could make it challenging for Ethereum to compete with DeFi projects in the future. 

Ethereum has a strong network of developers and contributors that offer the altcoin a solid foundation to drive adoption and utility. However, there is a spike in competition from DeFi projects and Ethereum-killers with their rising on-chain activity and active users. 

@ChartSimpson, a crypto analyst and trader, believes that Ethereum was oversold since the crypto market bloodbath that followed the Covid crisis in 2020. 

FXStreet analysts believe that Ethereum is in the ideal bearish Ichimoku breakout. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.