Ethereum (ETH) Price Will Drop to $400 By December If This Scenario Plays Out
The cryptocurrency markets’ recovery was once again interrupted with Bitcoin reversing and erasing its gains over the past two to three days. The altcoins have also followed suit as the majority of the top 10 coins traded in the red.
Analysts are divided on whether the next Ethereum Merge will be a bullish or negative development as a result of a crucial ETH price signal, which predicts that the altcoin’s slump might reach $400. According to the Crypto Fear and Greed index, investor sentiment has been “extreme fear” for a record-breaking 70 days in a row.
Only the Ethereum Merge appears to have the potential to ignite a rebound as the market searches for a catalyst to break the downward trend. If that’s the case, the market might continue to move sideways or downward through the hoped-for Merge date of September 19.
What’s next for ETH?
The recent “ETH 30d returns outlook” analysis from cryptocurrency research company Jarvis Labs, which employed the 30-day returns metric to “gauge the short-term profit and loss of the aggregate market at a given time,” provided a more in-depth picture for Ether going forward.
The 30-day returns for Ether are currently “trending towards 0 percent after being significantly negative since April,” as illustrated on the chart above, indicating that the market is becoming more positive as the Merge draws near.
A repeat of this fractal would lead Ether to the $400 area by December 2022, according to the price movement of Ether during the fourth quarter of 2018 when it was consolidating in the low $200 region before falling to $82 in December.
“Conversely, a flip of 1700 from resistance back to support would be equal to summer 2020’s flip of ~$350 and could signal the start of a brand new bull run.”
Jarvis Labs warned that while “short-term rallies to the $1,400–$1,700 range are possible,” traders should be careful as “they’re likely to be met by strong selling.”Source