Ethereum Price Expected to Dip Below $2K Soon, Analyst Predicts

Amidst the ongoing crypto market volatility, Ethereum (ETH) has faced significant challenges, dropping below the $3,000 mark recently. This downward trend has sparked concerns among analysts regarding the impact of Spot ETFs on Ethereum, following their introduction two weeks ago.

Various experts have expressed pessimism about ETH’s future, with some predicting a further decline below $2,000. Notably, Peter Schiff, the founder of Schiff Gold, highlighted the current situation by stating that Ethereum’s price could soon breach the $2,000 level.

The decline in ETH’s value has been notable, with a 10.74% decrease in recent months. This decline comes at a crucial time when the community had high hopes for the positive influence of Spot ETH ETFs on the cryptocurrency’s price, which has not materialized as expected.

Since the launch of Spot ETFs on July 25, Ethereum has experienced significant outflows, totaling $2.1 billion. In the short period from August 2, the outflows from Ethereum spot ETFs amounted to over $54.3 million, reflecting a growing trend of investor caution and uncertainty.

Peter Schiff pointed out the challenges faced by Ethereum ETFs, emphasizing a 15% decline within just two weeks of trading. This downward trajectory has raised concerns about the future performance of ETH in the market.

Analyzing the current price charts, ETH is trading at $2,985.86, marking a 5.29% daily decrease and an 8.88% monthly decline. Despite an increase in trading volume by 20.10% over the last 24 hours, indicators like the Chaikin Money Flow and MACD suggest strong downward momentum with sellers dominating the market.

Data from IntoTheBlock indicates a surge in outflows from large ETH holders, leading to increased selling pressure and further price depreciation. Reduced inflows also signal a bearish market sentiment, indicating a lack of confidence among investors.

The ongoing market conditions may push ETH towards a critical support level around $2,810.87, potentially leading to a retest at $3,560. Historically, such retracements have been followed by price recoveries, similar to Bitcoin’s pattern during the initial ETF trading period.

In conclusion, Ethereum’s current challenges underscore the volatile nature of the crypto market, with the potential for price fluctuations based on market sentiment and investor behavior.