Ethereum Plummets to 16-Month Low 😱💥: Experts Warn of a Drop Below $1200 Imminent!
Since the peak on Sunday, the crypto market has plummeted over 12%, evaporating nearly $400 billion, with Ethereum (ETH) being one of the biggest victims. On Tuesday morning in Asia, ETH crashed 15% to $2035, marking a 16-month low; the last time it fell below $2000 was in November 2023, during the awakening from the crypto winter. Now, ETH has halved 50% from its peak of $4000 in early December 2024, returning to the depths of the bear market.
ETH's 'Death Sentence': Plummeting to $1200?
Analyst 'Nebraskangooner' examined the monthly chart and discovered a double-top pattern, predicting that ETH will drop to $1200, approaching the bear market bottom of $1100 at the end of 2022. Dana Malan warned that ETH has broken its upward trend, stating, 'Double top confirmed, or heading straight for $1000.' Arete Capital partner McKenna bluntly stated, 'ETH is one of the worst charts I have ever seen.' 'Anonymous Crypto Predictions' pointed out that ETH needs to hold above the 200-week moving average (around $2500), but currently, it is far from that. The ETH/BTC ratio fell to a five-year low of 0.024 this week, adding insult to injury.
Safe Haven Wave Hits: Why the Plunge?
In what seems to be a favorable environment for crypto in the US, why did ETH crash after years of pressure from the Biden administration? Kobeissi analyzed that global risk aversion is the main reason. 'With the trade war escalating and economic policies unclear, all risk assets are declining, with stocks, cryptocurrencies, and oil prices all suffering.' Bitcoin is no longer a safe haven, decoupling from record highs in gold in February, and its decline has dragged the entire digital currency market down, with ETH bearing the brunt of the fall.
Since the peak on Sunday, the crypto market has plummeted over 12%, evaporating nearly $400 billion, with Ethereum (ETH) being one of the biggest victims. On Tuesday morning in Asia, ETH crashed 15% to $2035, marking a 16-month low; the last time it fell below $2000 was in November 2023, during the awakening from the crypto winter. Now, ETH has halved 50% from its peak of $4000 in early December 2024, returning to the depths of the bear market.
ETH's 'Death Sentence': Plummeting to $1200?
Analyst 'Nebraskangooner' examined the monthly chart and discovered a double-top pattern, predicting that ETH will drop to $1200, approaching the bear market bottom of $1100 at the end of 2022. Dana Malan warned that ETH has broken its upward trend, stating, 'Double top confirmed, or heading straight for $1000.' Arete Capital partner McKenna bluntly stated, 'ETH is one of the worst charts I have ever seen.' 'Anonymous Crypto Predictions' pointed out that ETH needs to hold above the 200-week moving average (around $2500), but currently, it is far from that. The ETH/BTC ratio fell to a five-year low of 0.024 this week, adding insult to injury.
Safe Haven Wave Hits: Why the Plunge?
In what seems to be a favorable environment for crypto in the US, why did ETH crash after years of pressure from the Biden administration? Kobeissi analyzed that global risk aversion is the main reason. 'With the trade war escalating and economic policies unclear, all risk assets are declining, with stocks, cryptocurrencies, and oil prices all suffering.' Bitcoin is no longer a safe haven, decoupling from record highs in gold in February, and its decline has dragged the entire digital currency market down, with ETH bearing the brunt of the fall.