- Ethereum is trading at $2,635 at press time, shedding 15 percent in the past week as experts claim that there will be some more price dips before it stabilizes.
- One expert says that the greatest support is at $1,800, but if the crypto were to breach this support, it could be on a freefall.
It’s not been the best of weeks for cryptocurrencies. Bitcoin is down by 15 percent as it hurls towards $36,000, with the Ukraine-Russia geopolitical conflict being touted as a major factor. Shiba Inu, Polygon, Cardano, Litecoin, and Crypto.com’s CRO have all shed over 20 percent. Ethereum hasn’t faired any better, dipping to $2,500 in the past day, with experts saying there could be more pain ahead for ETH holders.
At press time, ETH is trading 2.75 percent down for the day at $2,635. It hit a low of $2,510 in the past 24 hours, even as its trading volume spiked by 31 percent to hit $20 billion.
And according to experts, we may be heading lower. Speaking to The Times of India, Sharat Chandra, the vice president of strategy at EarthID said he expects Ethereum to continue with its downward spiral.
Edu Patel, the CEO of Mudrex, an automated crypto trading platform, concurs. He told the outlet:
[Ethereum] has multiple strong support levels at $2,200 and $1,850. There are very slim chances of ETH dropping below $1800 in the near future. However, if that happens, it will be a great buying opportunity.
Technical analysis shows that a dip to $1,700 is on the cards, Melbin Thomas, the co-founder of Sahicoin, a social network for crypto enthusiasts, pointed out. According to the chart below, the weekly support is around $2,000, but there is a high possibility that it dips below this level, Thomas noted.
There has been much talk about the great flippening, when Ethereum overtakes its rival Ethereum and assumes the throne. However, at the moment, BTC is more than twice as valuable as Ether. What’s more, Ethereum tends to follow Bitcoin’s lead, with both cryptos having lost 15 percent in the past week.
Ethereum has also proven to be more volatile than Bitcoin.
And unlike Bitcoin, Ethereum faces a lot of internal challenges, the biggest being scalability. While Vitalik Buterin has continued to work towards Ethereum 2.0 (which developers rebranded to Consensus Layer recently), the network has yet to upgrade and suffers from very high fees.
This has led to the rise of alternatives like Solana and Avalanche. According to the experts, investing in these alternatives might be the best move for now.
Picking Render Token and Decentraland as his favorite Ethereum alternatives, Patel stated, “Investing across different themes containing different tokens might be a more prudent idea.”
Related: Ethereum co-founder Vitalik Buterin explains why another crypto winter would be good for the market
