You can also read this news on BH NEWS: Ethereum’s Price Dilemma: Understanding the Downward Trend
Ethereum bitcoin (ETH) has experienced a significant price drop, falling over 13% since January 12th, reaching $2,333 at the time of writing. The decline has breached a critical support level at $2,400, a zone previously identified as strong by analyst Ali_charts. The analyst had indicated that if this demand zone between $2,388 to $2,460 was maintained, a rally could be strengthened.
Despite initial adherence to the analyst’s scenario, ETH’s price later lost this support zone. Historically, a fall below this level led to a 63% loss, with prices plummeting below $1,000 in May 2022. The current downturn is largely attributed to negative market sentiment, with investors quick to sell after a satisfactory earnings period and the commencement of ETF trading, which did not sustain a price rise.
The Grayscale Spot ETH ETF decision is pending this week, but expectations are set for another delay, similar to Fidelity’s experience the previous week. The SEC continues to express concerns over ETH’s potential classification as a security following its transition to Proof of Stake (PoS), and the risks posed by centralized staking organizations.
Market analysts are not optimistic about Ethereum’s short to medium-term price performance. An expert known as Limbo sees a potential for short selling if the price closes below $2,400. Another analyst, Market Profit, echoes the sentiment of a bearish outlook due to the overall negative market sentiment, despite long-term positivity around ETFs and network developments.
In summary, Ethereum’s price is under pressure from a combination of negative market sentiment, potential regulatory scrutiny, and investor caution. The possibility of a delayed ETF approval adds to the uncertainty, leaving short-term price predictions skewed towards bearishness despite the positive long-term outlook due to network enhancements.
The post first appeared on BH NEWS: Ethereum’s Price Dilemma: Understanding the Downward Trend

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