Analyst Says It “Won’t Be Long” Before Ethereum Drops Below $2,000
ETH fell below $3k amid higher ETF outflows. Some analysts are now predicting a drop below $2k for the altcoin.
Altcoins are taking a hit in the wake of high cryptocurrency volatility amid bitcoin’s own instability. ETH has suffered the most in the last 7 days after falling below $3000 on the charts amid this bearish trend. As expected, this drop has analysts concerned about the potential negative impact of spot ETFs on Ethereum since their launch two weeks ago.
Several analysts are predicting further declines due to the sustained drop. To start with, Peter Schiff, the founder of Schiff Gold, believes that ETH is now going to fall below $2,000. On his official X page, he made the following observation:
“Ethereum itself is now trading below $3K. It won’t be long before it breaks $2K. Gold rose 2% this week. The race is over. Gold wins the medal.”
The bearish sentiment comes after ETH reported an 10.74 percent decline over the past few months. The timing of this is particularly important, as the ETH Spot ETFs have been well received by many members of the community. They seem to be having little effect on the price on the charts.
High ETH ETF Outflows
There have been massive outflows since the launch of the Spot ETF on July 25. Since its launch, ETHE has seen a record $2.1 billion in outflows.
Ethereum Spot ETFs have seen net outflows of more than $54.3 million since August 2 alone. Several ETFs were affected, including ETHE with $61.4 million outflows, Fidelity with $6 million inflows and EZET with $1 million inflows. To put it simply: Since the launch of these products, outflows have been steadily increasing, adding to investor caution and lack of confidence.
What Do the Price Charts Say?
ETH is currently trading at $2995.86. This follows a 5.29% drop on the daily chart. The altcoin is also down 8.88% on a monthly basis. On the other hand, trading volume of the cryptocurrency has risen 20.10% over the past 24 hours.
According to an analysis by a media outlet: “ETH is now at the end of a strong downtrend. Chaikin’s money flow was below zero with -0.02, indicating that ETH was trading in an intraday range. This is due to selling pressure outweighing buying pressure.
Furthermore, the MACD is below zero at -62, indicating that the shorter-term EMA is below the longer-term EMA. These findings suggest that sellers are dominating the market, and that the market may be experiencing strong bearish momentum.
Upon further analysis, IntoTheBlock’s data showed that the number of large fork exits has increased in recent days. Outflows jumped from a low of 127,790 to 246,000. In short, large investors are selling their ETH Tokens, creating selling pressure which is driving the price even lower.
At the same time, inflows fell from a high of 525,820 to a low of 234,620. The decrease in inflows implies that sellers are dominating the market, a bearish signal.
Finally, the decline in ETH forex outflows is further evidence of this, as it shows a lack of investor confidence in possible near-term price rallies.
Therefore, if sentiment and current market conditions continue to prevail, the ETH is set to fall to the critical support level of around the $2810.87 mark. A retest of this level has historically taken Ethereum to $3560.
It can be concluded that just as bitcoin fell during the first few weeks of the ETF, ETH is likely to replicate this pattern and rally.
By Audy Castaneda