According to a recent Bloomberg article, John Roque of 22V research believes that Ethereum might fall to $420, a loss of 80% from its present price, and here’s why.
Ethereum may fall to 80%
According to the trader, Ethereum is currently trading at $2,000 and is likely to breach the support zone. It will probably fall below $420. Roque noted a price range where $2,000 is at the top, and $3580 is at the bottom.
Ether has fallen below $2,000 and it will now fall below the previous chart support of $420.
Source: Research 22v
It is quickly losing its value as the second-largest cryptocurrency. The above-mentioned indicators’ downward movement is a significant bearish factor for any asset.
Roque also stated that Ethereum was oversold in both the daily and weekly charts. This is the reason why Ethereum cannot rally in the near future.
ETH/USD trades aroun $2k. TradingView
While the analyst claims that Ethereum is basically “over” key support levels for the second largest cryptocurrency on the market may still be seen. The weekly chart is an example of this. Traders have not yet tested 200-week average support.
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ETH Exchange Supply Growing
Santiment, an on-chain data provider, gives us an insight into what Ethereum’s next price action might be (ETH). The data provider shows that large Ethereum shorts at $2,000 are evident on an eight-hour chart.
However, according to Santiment, this normally doesn’t work out with the shorter, and a short squeeze is likely to ensue. The price of Ethereum could rise once again.
History of funding rates. Source: Santiment
Another item worth considering is the ETH exchange supply. Santiment says:
“While we saw a nice drop in supply on exchanges for the past year or so, May 1st 2022 saw a huge increase in supply on exchanges as folks rushed to exit their positions, which is clearly reflected on the price itself.”
Therefore, any increase in exchange supply will lead to another drop. Investors are now panicking and giving up completely. Despite the dire situation, it may still be a great time to find new jobs.
Similar reading: Ethereum Hashrate Hits All-Time High. Will the Price Be Next?| Ethereum Hashrate Breaks All-Time High, Will Price Follow?
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