Since October, the crypto market has been enjoying a mostly decisive uptrend, with multiple cryptocurrencies reaching highs not seen since early 2022. Ethereum (ETH), one of the world’s most prominent digital assets, rose above $2,300 during this time.
Things, however, took an unexpected turn in the night between December 10 and 11 when liquidations totaling approximately $300 million sent multiple cryptocurrencies rapidly dropping. Bitcoin (BTC) fell from more than $44,000 to below $42,000, and Ethereum declined from about $2,350 to about $2,250.
Unlike Bitcoin, which somewhat stabilized, ETH continued its decline, and crypto trader and analyst AlanSantana posted his assessment and the accompanying chart on TradingView, stating that for Ethereum, “the bearish wave is only now starting, but it is already happening.”
ETH is in a strong downtrend as sell volume surges
In his breakdown of the current state of Ethereum, AlanSantana stated that during trading on December 12, the cryptocurrency “produced the strongest bearish session in many months.” The analyst went on to explain that ETH’s selling volume has significantly overtaken the buying volume and that the cryptocurrency, in fact, closed below the 10-day exponential moving average (EMA 10).
Additionally, Ethereum’s relative strength index (RSI), amidst the bearish momentum, is “jumping off a cliff.”
While warning that ETH is bound for a significant drop, AlanSantana also offered some silver lining to crypto traders, predicting that after the current price correction is over, the cryptocurrency will have a stronger year than 2021. In 2021, Ethereum rose above $4,000 for the first and only time in its history and ended the year strong at more than $3,760.
Finally, in his post, AlanSantana concluded that despite the bearish trend, there is little reason to panic and added that the market always offers opportunities to investors and always offers enough time to act.
There is always plenty of time to act.
The market offers endless opportunities… And is here to stay.
ETH price analysis
Ethereum entered the biggest bull run of 2023 in late October after renewed investor enthusiasm and a string of positive news sent the crypto market rallying. This uptrend experienced a sharp stop in the early hours of Monday, December 11, and in the last seven days ETH declined 7.94%.
The cryptocurrency’s performance in the last 24 hours seemingly confirms AlanSantana’s assessment, as Ethereum declined 2.17% and stood at $ 2,184 at the time of publication.
Despite the current price correction, ETH’s overall performance so far in 2023 remains impressive. Between October 18 and December 13, it climbed about $500 from $1,567. Since the beginning of the year, Ethereum is up a total of 80.96%.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
