Ethereum is on a slippery slope this year due to the ongoing and harsh bearish market conditions. The Merge was touted to be ETH’s saving grace but the development did little to nothing to scale up its price. ETH crashed on the same day of the Merge on September 15, falling from $1,400 to $1,200 levels. Since mid-September, Ethereum remained in a bad shape falling to new lows each month.
ETH plummeted double digits during the FTX-induced market crash and fell nearly 20% in a single day in mid-November. The markets are yet to come out from the FTX-related damage and ETH slipped to $1,082 levels on Wednesday.
Ethereum is trading on the razor’s edge and is close to falling to three digits in the indices today. However, the pullback in price has got ETH on the safer side as it reached the $1,162 level and is up nearly 7% in the day’s trade.
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Will Ethereum Fall Below $1,000?
Ethereum slipped to the $950 level on June 19, 2022, after falling from $1,950 during the same month. The second biggest crypto shed more than 50% in value during this period but quickly recovered and doubled in price. However, five months later, ETH is now in the same position threatening to fall below $1,000.
The market conditions are bearish and another downturn can drag ETH below $1,000. Though the markets are up on Wednesday, it wouldn’t take much time for it to drop in the coming days. The same price cycle has been repeated throughout 2022 making leading cryptos to sit on a swing.
It is advised to remain cautious during the period and avoid taking an entry position despite ETH being at a lucrative price.
Leading crypto analyst Altcoin Sherpa has predicted that Ethereum might crash to $700 in the coming months.
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“ETH: Some high timeframe charts. I think if some big player like GBTC gets sold off, we’re going to see something like $500-$700 Ethereum. I think $500 should be a decent place to bid if things go to shit based on psychological alone. But there’s a long way to go b4 then,” he tweeted.
At press time, Ethereum was trading at $1,166 and is up 6.9% in the 24 hours day trade. It is down 76.2% from its all-time high of $4,878, which it reached in November 2021.