- ETH Struggles Amid Bearish Market: Ethereum has dropped 16% over the past week, hitting $1,861, and only 50% of holders are still in profit, down from 82% at the start of the year.
- Major Outflow and Potential Rebound: $1.8 billion worth of ETH left exchanges last week, suggesting long-term holding, which could signal a future rebound.
- Support Levels and Uncertainty: ETH may test the $1,700 support level, and if it fails, further liquidations could lead to a prolonged recovery period. However, a surge back to $4,045 remains uncertain.
Ethereum (ETH) has been facing some serious struggles lately. Over the past week, it’s taken a sharp 16% dive, falling to $1,861 from an intraday high of $2,138. This marks its lowest point since December 2023, leaving many investors scratching their heads, wondering: will ETH ever bounce back from this?
Profit Drop and Investor Woes
According to Glassnode, only 50% of Ethereum holders are currently in profit, a sharp decline from the 82% who were profitable at the start of the year. The drop has shaken investors, with some selling off at a loss, contributing to the downward pressure on the price.
Bearish Signals on the Chart
When you look at the monthly chart on TradingView, things don’t look much better. ETH has been trading below the Ichimoku Cloud since January 25, signaling that the market is still in a bearish phase, and the outlook isn’t all that encouraging just yet.
Massive Outflow from Exchanges
On top of all this, $1.8 billion worth of ETH left exchanges last week—the largest outflow since December 2022, according to Lookonchain. Typically, when investors move their ETH to private wallets, it suggests they’re holding for the long term, which could hint at a potential price rebound in the future. But for now, that remains uncertain.
Will ETH Hit $1,300?
If Ethereum’s price keeps spiraling downward, it could find itself hitting the $1,300 mark, which is another key support level on the monthly chart. But if demand starts picking up, ETH could make a strong comeback and potentially surge back to $4,045, marking a 120% rise from its current price. Of course, this is all speculative—given the market’s current bearish control, it’s hard to say.
The Likely Scenario
Right now, the most probable scenario for Ethereum seems to be testing support around $1,700. If that doesn’t hold, we could be in for some major liquidations, leading to even more severe market losses. Recovery would then be a real uphill battle. So, while Ethereum’s future is still uncertain, it’s clear that the road to recovery will be anything but smooth.
