While the majority of assets in the cryptocurrency sector going through a period of sideways trading, Ethereum (ETH) is no different, and breaking through a crucial support level could spell more trouble for the second-largest crypto by market capitalization.
Specifically, Ethereum dropping below the $1,600 – $1,550 zone might lay the foundation for a significant correction between 37% and 45%, targeting the $1,000 level, according to the chart observations shared in a social media post by crypto trading expert Ali Martinez on August 21.
Earlier, on August 20, the crypto analyst also highlighted that the Ethereum network fundamentals were “still lagging, signaling a bearish trend.” As he specified, the number of monthly active Ethereum wallets is lower than the yearly average, indicating little blockchain activity, which is “a classic sign of weak network health and usage.”
At the same time, the non-fungible token (NFT) market on Cardano (ADA) is witnessing a substantial shift, its NFT floor price index surpassing that of Ethereum by 22%, according to the seven-day chart data shared by X (formerly Twitter) user Stocktwits NFTs on August 21.
Ethereum price analysis
Meanwhile, the price of ETH at press time stood at $1,668.55, indicating a decline of 0.16% in the last 24 hours, as well as a 9.66% drop across the previous seven days, in addition to losing 11.82% on its monthly chart, according to the most recent data.
Although the potential further crash looks bearish from the current viewpoint, many crypto experts and Ethereum enthusiasts would argue that it is precisely the threshold at which to accumulate and ‘hodl’ the cryptocurrency while it is still cheap before its price surges upward in the future.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
