The crypto market crash in January caused many assets to end the month negative. Ether (ETH), the second largest cryptocurrency by market capitalization, closed January 27% lower than December.
While Ethereum (ETH) posted positive returns in February, the danger may not be over for the price to fall again. Bloomberg’s analysis sees the possibility of the price of ETH falling as low as $1,700. But this will leave Ethereum’s bullish fundamentals intact, analysts say.
Bloomberg Intelligence thinks the price of ETH could fall as low as $1,700
In Bloomberg Intelligence’s Crypto Outlook for February, leading analysts stated that there is a possibility that the price of the Ethereum network’s native token, Ether, may fall to price levels below $2,000.
The analysts, led by senior commodities strategist Mike McGlone, stated that the ETH market is in a consolidation phase at the end of a bull market. This is indicated by the fact that the market has benefited both buyers and sellers by trading in the price range between $2,000 and $4,000.
However, the quants are concerned that the price level could be breached to levels below $2,000. The analysis takes into account the possibility that Ethereum could repeat its price action from last summer and hit a price level of $1,700.
The concern stems from technical data indicating that the price of ETH tends to fall below the support threshold found at price levels below the 52-week moving average.
Our chart shows Ethereum moving towards the bottom of the range, approaching the support threshold about 30% below the 52-week moving average. Ethereum could repeat last summer, revisiting about $1,700, analysts say.
Regardless, the sleuths note that Ethereum’s bullish fundamentals remain intact, so a price drop to $1,700 would generally be bullish for Ether. It may even be necessary to remove “weaker leveraged long positions” like last year.
Bullish fundamentals are already playing out in the market
Right now, the price of Ether seems to be downplaying the concern. ETH has crossed the USD 3,000 price level, up about 19.7% in recent days. ETH is trading at around $3,190, up 3.22% on the day at the time of writing.
The rest of the crypto market has been trading in the green in recent days, with Bitcoin (BTC) again passing over $40,000. Bitcoin, which Bloomberg’s analysis expects to be stuck at $100,000 as the next price level to overcome, is currently trading at $44,000, posting double-digit gains like ETH in the past 7 days.
Disclaimer
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.
About the author
Olivia’s interests span the entire cryptocurrency and NFT and DeFi industry. She remains as fascinated with cryptocurrencies today as she was in 2017 when she first started reading about them. She is actively looking for the latest Crypto related stories. When she’s not writing, she tends to her pet Chihuahua or prepares vegan recipes. Reach me at [email protected]
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