CandleFocus

Ethereum price prediction: 3 reasons why ETH may tank soon

Author: Content Editor
The price of Ethereum has experienced a significant crash this year and is currently at its lowest level since December 2023. On-chain metrics have weakened and there has been an increase in outflows from spot ETH ETFs. Technical analysis indicates a strong downward trend for Ethereum, with a triple-top chart pattern forming at around $4,050. The coin has reached the neckline of this pattern at $2,153, suggesting a potential bearish breakdown. The Relative Strength Index (RSI) and MACD indicators are also pointing downwards, supporting the idea that the price will continue to fall. The lack of demand from Wall Street investors and the profitability of holding Ethereum itself compared to ETFs have contributed to the price crash. Ethereum's profitability has also decreased compared to other layer-1 networks such as Tron and Solana. The network has lost market share to other chains like Solana, Arbitrum, and Base. These factors, combined with weak on-chain metrics, suggest that Ethereum will struggle to gain market share in the near future.

Related News