Ethereum drops below $1000 as bears aim for $800
Most cryptocurrencies are now fully in a bear market. Ethereum fell below $1000 for the first time in years as weakness in the market continues. While we did see some slight recovery in 24-hour intraday trading, the overall trend will continue downwards. Here are some of the highlights:
ETH bearish run will continue as the coin tries to find support at $800
$1000 was seen as a crucial support zone for ETH
It is unlikely the coin will reclaim $1000 in the coming days.
Data Source: TradingView
Are steep losses coming for ETH?
Over the past week alone, Ethereum has seen a 35% drop in value. This is one of the worst weeks for the coin in 2022 and sadly, we have not seen the last of it. At the time of writing, the token was hovering above $950. However, we don’t think the price action will stay there for long.
Instead, ETH will slide as bears take full control. It may however try to find support at $800. In fact, looking at the chart, the $800 mark has often proven very tough to crack. Bulls will hope to keep ETH above this as they await sentiment to improve in the market.
But despite this, there are still several fundamental risks that the broader crypto market has to deal with. First, tightening monetary policy means that the era of cheap credit is over. As money is sipped out of the economy, we may see lower flows of capital towards risk assets, including crypto.
When will the bear market end?
The crypto bear market started off at the start of 2022. There were periods when analysts felt that perhaps most coins had bottomed, but it seems more weakness is still coming.
ETH could take another 3 months of high volatile trading before it establishes a sustained bull run. But for now, the key to watch is how long it stays above $800. If this support is lost, then we may see massive losses again for ETH.