Ethereum could see a drastic price drop to as low as $200–$400 if the crypto market has entered a new bear cycle, according to Quit, vice president of blockchain at Yuga Labs.
On a post on X, Quit in Mar. Post on X Quit questioned Ethereum Price Targets:ETH). While many see $1,500 as a likely floor for ETH, he warned that if the downturn is only beginning, historical trends suggest an 80–90% drawdown could push prices as low as $200–$400.
The Ethereum 30% weekly decline and the 50% drop over the past three months are not necessarily signs that the worst has passed, since true bear markets could wipe out much more value.
Quit, a personal bull, remains positive despite the current outlook. However, he advises investors not to be complacent. reconsider They will lose their investment if they don’t prepare themselves for further losses.
Ethereum Whales have already been spotted positioning For further price decreases. On Mar. On Mar.MKR( ) can lower the price of its liquidation. This wallet holds 100,394 Ethereum ($182million) on Maker. Its liquidation price is $1127.
A separate Ethereum ICO Whale also transferred 7,000 ETH ($12.94m) from Kraken to signal possible pressure on the market.
Ethereum struggles for many reasons including a falling network activityFalling institutional demand and the growing popularity of cheaper and faster blockchains are all contributing factors. SoSoValue reports that spot Ethereum exchange traded funds saw net outflows in excess of $119m over the course of just one week. data.
Due to the absence of stablecoins, some analysts believe that spot ETH ETFs are less appealing than those offered by decentralized Finance at 4.5%. staking incentives.
Hyperliquid and other platforms are gaining ground on Ethereum, which is a layer 2 fragmented ecosystem.HYPEBerachainBERAThe value of these assets has been estimated at billions.
Due to the decline in network activity and low gas prices, ETH also has failed to maintain its deflationary state, as its supply is now increasing at a rate of 0,7% per year. The EIP-1559 Burn Mechanism, which was designed to lower inflation but has not been able to counteract new issuances despite its intention.
In the absence of ETF staking incentive and increased demand for DeFi, it is not clear if ETH can soon recover its $2600 previous support. According to Coinglass, Ethereum was trading around $1,850 at the time of publication, and $246 million had been liquidated in the last 24 hours. data.
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Source: crypto.news
