Key Takeaways:
- Analysts believe Ethereum might not see an end to its bear run any time soon.
- Moreover, an analyst stated that the merge may not have much impact on ETH price action.
NEW DELHI (CoinChapter.com) — Ethereum (ETH) prices might be looking at further downside movement, as per analysts.
Ether prices fell below $1,000 in the crypto winter brought on by the collapse of Terra and macro headwinds. Furthermore, ETH painted a bearish pattern that forecasted a $500 target for the prime altcoin.
Several analysts shared their views on Ethereum’s bear trend. According to Stan Weinstein, a veteran analyst who first outlined the principles of stage analysis, a cryptocurrency or an asset price action consists of bottoms, uptrends, tops, and downtrends.
Related: Ethereum sees ‘bear pennant’ crash ahead — ETH could fall below $500.
Pseudonymous analyst John Wick noted that ETH is in stage 4, the downtrend of the stage analysis. Moreover, Wick noted that ETH prices have dropped below the track line, indicating increasing selling pressure for ETH.
The analyst advised his 91,500 followers they should either look for short opportunities or cash positions. Another technical analyst, CryptoDude noted that the price altcoin’s price action in the lower time frames is “not looking great.“
The analyst shared an ETH chart on the four-hour time frame. ETH prices have failed to move above $1,200. Moreover, bears seem to be selling on relief rallies, indicating high selling pressure for ETH.
Merge Won’t Mend ETH’s Price Action
Ethereum proponents are hoping that Ethereum’s upcoming transition to a proof-of-stake mechanism, dubbed the Merge, might help ETH prices break out of their downtrend.
However, Joel Kruger, Market Strategist at LMAX Group, told CoinChapter does not think the Merge would have any significant impact on ETH price action. Kruger believes ETH price action is more dependent on global macro hints.
We don’t think the merge will have any significant impact on price action. The market continues to be fixated on all things global macro. Until we see a turnaround in global sentiment, the balance of risk favors additional setbacks in the price of ETH
Joel Kruger told CoinChapter
The analyst further suggested that traders use Bitcoin (BTC) price action as to identify ETH bottoms. Kruger also stated that Bitcoin might fall to $14,000, identifying the price level as ‘a good area to look for a bullish reversal.‘
Also Read: Ethereum reclaims $1K but beware of ETH “fakeout”.
Crypto assets’ increasing correlations with traditional markets mean crypto prices react to traditional cues as well. The market strategist suggested that once the market’s risk appetite starts rising, it would likely ‘serve as a formidable prop for ETH [prices].’
Finally, Kruger also shared his views on the regulatory clarity surrounding cryptos. He stated that crypto-friendly regulatory clarity might help reverse the ETH downtrend.
At writing, ETH was trading at $1,090, down 4.7% on the day.
