ethereum price is likely to drop to $2,000 first before jumping to $4,000, according to Polymarket, the popular prediction platform.
The odds of ethereum (eth) falling to $2,000 by December 31 have been increasing since August 25, when they bottomed at 54%. These odds increased to 60% on August 27, when the coin fell to $2,600 from this week’s high of $2,818.
ethereum, like most altcoins, has been in a strong downtrend since March, when it hit a high of $4,085. Therefore, the odds of a drop to $2,000 have increased, as the coin needs to drop by 23%. It would need to rise by 54% to reach $4,000.
Other ethereum-reach-3000-before-september” target=”_blank” rel=””>Polymarket Survey with $231,000 in assets shows an 8% chance that Ether will rise to $3,000 before September. Most traders on ethereum-all-time-high-in-2024″ target=”_blank” rel=””>Another survey At $1.1 million, it is not expected to reach a record this year.
ethereum has faced numerous challenges this year. It is experiencing substantial competition in the stablecoin market, where Tron (TRX) handles billions of dollars in transactions every day.
It also faces competition in the decentralized finance industry, where Solana (SOL) had the highest DEX volume in July as demand for its meme coins surged. Solana’s DEX volume was $57 billion in July, while ethereum handled $54.5 billion.
This month, however, ethereum leads by far, having handled $50 billion compared to Solana's $33 billion.
The biggest challenge facing Ether is that its exchange-traded funds are not getting traction among investors. Data from eth-spot” target=”_blank” rel=””>SoSoValue shows that these funds have had a cumulative outflow of $477 million since their inception. They have had outflows in the last eight consecutive days.
ethereum formed a death cross
<img loading="lazy" decoding="async" width="3574" height="1982" src="https://crypto.news/app/uploads/2024/08/ethereum-price-2.png” alt=”ethereum Price”/>
Furthermore, Ether has formed a series of lower highs and lower lows. More importantly, it has also formed a death cross as the 200-day and 50-day exponential moving averages have crossed over each other.
It has also formed a bearish flag chart pattern, which indicates further declines. If this happens, the next point to watch will be this month’s low at $2,113. A break below that point will increase the chances of the coin falling to $2,000.
