- ETH has declined by 46% over the past year.
- Ethereum could drop to October 2023 levels of around $1657 as bearish sentiments persist.
Over the past month, Ethereum [ETH] has experienced strong downward momentum. In fact, ETH is down by 46.06% on yearly charts.
While other crypto assets such as Bitcoin are up over the past year, ETH shows no signs of recovery. On the contrary, ETH could decline further.
Source: TradingView
As such, the altcoin has broken down into a symmetrical triangle. After the breakdown and a retest, ETH is now looking bearish.
This suggests that ETH is in a position for further losses on its price charts. A breakdown here suggests that the downward momentum is strong and could even continue.
Source: TradingView
The recent decline is jeopardizing Ethereum’s market position, with continued downward movement potentially weakening the altcoin further against its rivals.
ETH dominance is forming a descending triangle, a bearish pattern commonly observed in technical analysis. While downward pressure persists, there’s potential for ETH dominance to make a corrective move to the upside.
This trend is further supported by a drop in Ethereum’s circulating market dominance, which has fallen from 17.32% to 7.39%. Such a significant decline highlights ETH’s underperformance compared to its competitors.
Source: Messari
Therefore, with the crypto market excluding Bitcoin breaking down, it suggests a strong bearish momentum among altcoins. With altcoins facing strengthening bearishness, we could see ETH make more losses and drop further.
What ETH’s on-chain data suggests
According to AMBCrypto’s analysis, Ethereum is seeing strong bearish sentiments across the charts.
Source: Messari
For starters, Ethereum’s futures buy volume has declined to a two-week low of 6.17 billion. This is a drop from 16.25 billion, suggesting that the altcoin is seeing fewer buyers in the market.
As such, investors are not buying the crypto, reflecting a strong lack of confidence in the market conditions.
Source: IntoTheBlock
This low buying activity is even more prevalent among Ethereum’s large holders. As per IntoTheBlock data, ETH whales are not buying but selling.
In fact, large holders’ netflow has dropped into negative territory, hitting -1.65k. Such a dip suggests there’s more cash outflow from whales into ETH than inflow.
Source: CryptoQuant
Ethereum’s exchange reserve is increasing, reaching 18.4 million—a rise of 200 million ETH tokens in the past day.
This surge in reserves indicates that more ETH tokens are being deposited into exchanges. It suggests that investors are selling their holdings to mitigate further losses, reflecting a growing bearish sentiment for ETH.
Is Ethereum Set for More Losses?
With Ethereum’s investors turning bearish with increased selling activity and reduced demand, the altcoin could see more losses on its price charts.
Source: TradingView
ETH is experiencing growing downward momentum, as highlighted by the recent bearish crossover on its Stochastic RSI.
The continued decline in the Stochastic indicator suggests further losses could be on the horizon, especially with the RVGI signaling a bearish trend.
Current market conditions position Ethereum for a potential further downside. With its price dropping to $1,788, a breach of the $1,757 support level could push ETH toward October 2023 levels around $1,657.
For a bullish reversal, ETH would require a daily close above $1,800.
