Ethereum (ETH) has hit a seven-month low, dipping to $1,528. Notably, Standard Chartered anticipates ETH reaching $8,000 by 2026.
Ethereum, the second-largest cryptocurrency in terms of market capitalization, recently reached its lowest point in seven months, at $1,528. Over the last three months, ETH has faced significant bearish pressure, resulting in a sustained downward trend. Despite a brief attempt by bulls to breach the $1,750 resistance level in early October, this upward momentum was short-lived.
At present, ETH is trading at $1,543, marking a 2% decrease over the past 24 hours. During the same period, trading volume has seen a modest 5% increase, totaling $5 billion.
Multiple factors contribute to ETH’s recent weakness. The ongoing Middle East conflict, with Hamas launching an unexpected attack on southern Israeli towns, has had an impact on overall crypto market sentiment. The September FOMC meeting held on October 11 has added to the prevailing uncertainty.
In terms of social media activity, crypto data aggregator Santiment reports an uptick in Ethereum discussions across various platforms, including Discord, Telegram, Reddit, and 4chan, since late September. There has also been an increase in the age consumed, indicating that previously dormant ETH has been on the move. This heightened social activity is likely a response to the bearish price performance.
On a positive note, Standard Chartered, a British multinational bank, holds an optimistic outlook for Ethereum. The bank predicts that the altcoin could reach $8,000 by 2026, representing a substantial 400% increase from its current value.
Geoff Kendrick, the leader of FX and Digital Assets Research at the firm, further stated, “We believe that the journey to higher ETH prices may take more time than for BTC, but we anticipate ETH eventually achieving a higher price multiple than BTC compared to current levels (5.0x versus 3.5x).”
Is a Bearish Reversal Imminent?
A more in-depth examination of Ethereum’s recent price dynamics reveals a bearish trend. The 50-day exponential moving average (EMA) has surpassed the present trading price, resting at $1,643. Furthermore, the daily relative strength index (RSI) sits at 35, suggesting that Ethereum is nearing an oversold condition.
Having surpassed the support level at $1,585, the next probable test point emerges at $1,435. A continued downturn might lead to a price assessment of the $1,140 support region. Conversely, should the bulls succeed in pushing the price beyond the $1,645 resistance threshold, a potential upswing towards $1,735 might become a viable scenario.