Forecast for the Price of Ethereum: How Low Will the Crash Get?
The price of Ethereum has been steadily declining while the cryptocurrency fear and greed index continues to decline. After plunging for two weeks in a row, ETH hit its lowest point since October at $1,645. Since December of last year, when it peaked, it has fallen by more than 60%.
Ethereum Price Technical Analysis
The weekly chart illustrates how much the price of ETH has fallen. The altcoin fell over 60% of its value after reaching a peak of $4,098 in December, wiping out billions of dollars in value.
At $4,098, the token displayed a triple-top pattern, a common bearish indicator with three peaks and a neckline at $2,140. The fact that ether has already dropped below that neckline suggests that bears have won.
The price of Ethereum has also fallen below the $1,935 Fibonacci Retracement mark, which is 61.8%. This is significant since most pullbacks take place at this Fibonacci level, which is commonly referred to as the “golden ratio.”
The 50-week and 100-week Exponential Moving Averages (EMA) have also been surpassed by Ether. Furthermore, both the Stochastic Oscillator and the Relative Strength Index (RSI) are pointing lower.
The much-watched Average Directional Index (ADX) is heading upward and has surged to 30. One popular indication of trend strength is the ADX; a value above 20 denotes a trend that is getting stronger.
With $1,500 and $1,000 serving as key support levels, Ethereum’s price is therefore probably on the verge of a bearish breakdown in the days ahead.
If the price of ETH rises to retest the critical resistance level at $2,138, the bearish price prediction will be nullified.
Fear and Greed Index is Crashing
The current increase in investor apprehension has intensified the pessimistic outlook for the price of Ethereum.
The cryptocurrency fear and greed index has reached the fear zone at 27, according to CoinMarketCap data. Investors are favoring Bitcoin over altcoins, as seen by the altcoin season index falling to 16.
Most significantly, the stock market fear and greed index has dropped to its lowest level since 2020, the extreme fear zone of 4. When this occurs, investors tend to stay out of the market, which is why outflows from spot ETH ETFs have persisted. They lost nearly $50 million last week, compared to $8.65 million the week before.
This week, macro factors such as the ongoing trade war will be key drivers for Ethereum prices. There are signs that this trade war will accelerate after Donald Trump remains adamant that his tariff strategy will work out.
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