How Low Can Ethereum Go?

Ethereum’s decline has been nothing short of alarming. The glory of late 2021 is long gone, and support levels keep breaking one after another. Investors are anxious, and some are contemplating cutting their losses. But this is precisely the time when a rational analysis matters most.

First, let’s look at the macro factors. The U.S. Federal Reserve has paused rate hikes, and monetary tightening seems to be easing. Long-term, this is positive for crypto markets, though short-term liquidity still feels tight.

From a technical standpoint, Ethereum has broken through the key $2,000 support and is now struggling to hold the $1,800 range. If it fails here, $1,600 is the next likely stop. However, RSI is entering oversold territory, and trading volume is decreasing.

What does this imply? It may suggest that the heavy selling pressure is ending and a rebound could be near. On-chain data also shows that whales are slowly beginning to accumulate again. The old saying rings true: “Fear creates opportunity.”

Market sentiment always swings to extremes. In a bull market, everyone’s optimistic; in a bear market, everyone panics. But the biggest gains often go to those who take positions in times of fear and uncertainty.

No one can predict the exact bottom. But one thing is clear — Ethereum has already seen a significant correction, and its long-term fundamentals remain strong.

This could be the true bottom. Of course, there’s still room to dip further. But for those who can manage risk, this might just be the opportunity of a lifetime.

Ethereum may fall a bit more, but I believe this is the bottom. Even a simple 2x long could yield substantial gains.😭