Following the collapse of the Terra LUNA network in 2022, the price of ethereum followed the overall bearish market trend. As a result of this, the price of eth had fallen to a new cycle low of $900, before recovering once again. However, now that the altcoin is still immersed in the bear market, questions have once again been raised about the chances of the price returning to its 2022 lows.
crypto Analyst Says ethereum Could Fall to $900
In an analysis published on TradingView, crypto analyst FieryTrading presents a scenario in which the price of ethereum could fall back towards its 2022 lows. The analysis in question takes into account the multiple bullish trend lines along which the price has fallen. of the digital asset during the last year.
According to FieryTrading, ethereum had one final bullish line left that had emerged on the chart towards the end of the June 2022 sell-off. However, the digital asset has been unable to maintain this trend line and they note that it “has more than a year and it should have some weight.
<img decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/i/1ZDAfdAV/" alt="Tradingview.com ethereum Price Chart” width=”1547″ height=”920″ loading=”lazy”/>
eth price could fall to $900 | Source: ethereum-Officially-BEARISH-Will-The-Rest-Follow/">Tradingview.com
Because of this, the crypto analyst believes that the digital asset has entered a long bearish streak. As this bearish streak continues, which the analyst expects to be even longer, they see a high possibility of ethereum price reaching as low as $900 once again, as shown in the chart below.
Despite apparently being convinced of the eth price drop, the analysis still needs confirmation. His explanation, also shown on the chart, calls for waiting for the price to drop below the $1,510 level for this to happen.
<img decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/ghuPFoLt/" alt="Tradingview.com ethereum Price Chart (Cryptocurrency Analyst $900)” width=”2804″ height=”1746″ loading=”lazy”/>
eth price falls to $1,567 | Source: ETHUSD on Tradingview.com
Bearish Entering bitcoin Halving
As the analyst explains, the bearish expectation is not limited only to the price of ethereum. It appears to encompass the entire market which, according to the analyst, has ended its bullish half and has now entered the bearish half that often leads to halving. As the analyst says, this indicates “that it is now the turn of the bears.”
This school of thought is not new and is in fact supported by historical data. Looking at the charts of cryptocurrencies like bitcoin and ethereum shows that there was a bearish leg that led to the bitcoin halving. After the event, this trend tends to reverse, signaling the start of the bull market.
In the months leading up to the 2020 halving event, the price of ethereum saw a sharp drop that placed its price in the $120 region before recovering again. So if this repeats itself, then FieryTrading analysis for eth might work.
