Ethereum (ETH) has lost approximately 25 percent of its value in the last week, falling from $ 3,000 to $ 2,100. The volatility in the cryptocurrency market has significantly increased the selling pressure on the largest altcoin. Despite the recent decline, analysts agree that the price has not yet formed a permanent bottom.
Background of the Sharp Fall in Ethereum
The general weakness in the cryptocurrency market in recent weeks has directly affected the price of Ethereum. While increasing uncertainty in global markets led to a decrease in the appetite for risky assets, most investors chose to reduce their positions. In this process, ETH fell to its multi-month low in a short time, falling to the $ 2,100 band.
According to technical analysis data, this level stands out as an important buy wall in the market. The analyst known as CW on the X platform stated that Ethereum is experiencing intense buyer interest in this region. However, he emphasized that the strong selling pressure at $ 2,560 must be overcome for an upward recovery to begin.
Market experts point out that the decline may not only be a short-term correction. In particular, volume data and internal Blockchain indicators show that the selling pressure is not yet completely over. This picture causes investors to act cautiously.
Analysts’ Scenarios Regarding the Bottom Level
Cryptocurrency analyst Ali Martinez made his evaluation based on the Market Value to Realized Value (MVRV) band. Reminding that according to historical data, Ethereum generally forms a bottom when it falls below the 0.80 MVRV level, Martinez stated that the price may fall below $ 2,000 under current conditions. Similarity with past cycles is among the factors that strengthen this scenario.
Crypto Tony, who has more than 560,000 followers on X, shared a similar view. According to the analyst, Ethereum may test the $2,000 level, which is seen as a psychological support point. Then, the possibility of a strong recovery may come to the fore. In the shared graphs, sharp fluctuations in the short term and the expectation of a re-rise in the medium term stand out.
Long-term projections present a more complex picture. Crypto Tony’s weekly macro chart holds the possibility of a pullback to $1,500 levels by summer, while also containing a strong upside potential pointing to new highs above $6,000. Analysts emphasize that investors should pay more attention to risk management in this period.
