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- Ethereum faces significant bearish trends but retains long-term bullish potential once the market correction ends.
- Analyst Alan Santana predicts Ethereum could surpass $10,000 after the current correction stabilizes.
According to famous analyst Alan Santana, Ethereum’s future remains unknown, despite its prominence as the second-largest cryptocurrency because it is still classified as an altcoin.
In his most recent analysis, Santana expresses concern about Ethereum’s bearish inclinations, highlighting the market’s speculative character and volatility.
Although ETH has shown enormous positive potential in the past, its present performance suggests a huge market correction, leaving investors wondering how low the price can fall.
📉Ethereum: Speculation, Open Mind ($1,600 Or $1,000?)
While Ethereum is the second biggest Cryptocurrency, it is still an altcoin. Anything can happen within this market.
We already know of the bullish potential and capacity for this and other projects to grow.
We know these… pic.twitter.com/H02A6YFEvm— Alan Santana (@lamatrades1111) September 4, 2024
Santana Warns of Bearish Indicators and Institutional Pressure on Ethereum
According to Santana, ETH’s current underperformance is especially troubling, given that it has been growing since June 2022, while several other cryptocurrencies only reached their lows in mid to late 2023.
The weekly Moving Average Convergence Divergence (MACD) indicates a big bearish divergence that has been developing for more than three years. This is a significant indication, indicating the worst conditions since January 2022, when the previous bear market accelerated.
To exacerbate these concerns, ETH has breached its initial baseline level, leaving prices with ample room to fall further. According to Santana, the new baseline objective is between $1,750 and $1,550, a crucial level around which Ethereum traded in October 2023 prior to the last upward surge.
Furthermore, the weekly Relative Strength Index (RSI) has already turned negative, confirming a nearly four-year bearish divergence and breaking through its final level of support before a possible major breakdown.
One of the most important issues raised by Santana is the function of Ethereum spot ETFs. These ETFs, which represent institutional interest in the cryptocurrency, are pushing for prices to fall to a range of $1,000 to $1,200, a level at which Ethereum last traded in November 2022.
This shows that key market participants are waiting to profit from a potential further price decrease, creating pressure that could push the market lower. Despite these gloomy predictions, Santana is prepared for any outcome, acknowledging the volatility that characterizes crypto markets.
Ethereum’s bearish trend is supported by the latest CNF report, which shows a total net outflow of $5.984 million from Ethereum spot ETFs on September 6, according to Sosovalue data.
These ETFs continue to have liquidity issues, with a 20% decline in U.S. market depth, according to Sosovalue research. These outflows reflect greater pessimism about Ethereum’s short-term future and highlight the fragility of present market conditions.
While the gloomy perspective dominates the current sentiment, Santana is still bullish about Ethereum’s long-term possibilities. He acknowledges that after the present market downturn is over, Ethereum’s positive potential will stay strong.
In his opinion, Ethereum may easily surpass $10,000 during its next development phase. However, before this can occur, the market must reach a bottom, which Santana believes would take several months.
At the time of writing, ETH is trading at around $2,294.51, up 0.38% over the last 24 hours. However, the crypto’s moves have remained bearish during the last seven and thirty days, indicating that the current condition is far from done.
