After the Terra LUNA network experienced a collapse in 2022, Ethereum’s price mirrored the broader market downturn. Consequently, the price of ETH plummeted to a fresh cycle low of $900 before staging a recovery. However, given the lingering bear market conditions in the world of altcoins, uncertainties have resurfaced regarding the possibility of the price revisiting its 2022 lows.
Cryptocurrency Analyst Predicts Ethereum’s Potential Drop to $900
In a recent analysis shared on TradingView, FieryTrading, a cryptocurrency analyst, presents a scenario wherein the price of Ethereum could potentially regress to its 2022 lows. This analysis takes into consideration the numerous bullish trend lines that Ethereum’s price breached in the past year.
According to FieryTrading, Ethereum had one remaining bullish trend line that emerged near the bottom of the June 2022 sell-offs. However, this trend line has been unable to hold, and the analyst notes that it’s “well over a year old and must carry some weight.”
As a result, the crypto analyst suggests that Ethereum has entered a protracted bearish phase. With expectations of a prolonged downturn, the analyst anticipates a significant possibility of Ethereum’s price revisiting the $900 mark once again, as indicated in the chart below.
While the analyst appears convinced about the potential decline in ETH’s price, their analysis requires confirmation. Their explanation, as depicted in the chart, advises waiting for the price to drop below the $1,510 level for this scenario to materialize.
Pessimistic Outlook Ahead of the Bitcoin Halving
As the analyst elaborates, the bearish sentiment extends beyond Ethereum’s price alone; it appears to encompass the entire market. The analyst believes that the market has completed its bullish phase and has now transitioned into the bearish phase typically observed leading up to the halving. In the analyst’s words, this signifies that “it’s now the bears’ turn.”
This perspective isn’t novel and is substantiated by historical data. When reviewing the historical price charts of cryptocurrencies like Bitcoin and Ethereum, they reveal a bearish trend leading up to the Bitcoin halving event. After the halving, this trend typically reverses, signaling the onset of a bullish market.
In the months preceding the 2020 halving event, Ethereum’s price experienced a significant decline, dipping to the $120 range before rebounding. If a similar pattern repeats, FieryTrading’s analysis for ETH could materialize once more.