Ethereum could drop even further down the line to the $140 price range before the next bull run. The cryptocurrency plummeted even lower when Bitcoin dropped below $8,000 which points to a still on-going bearishness for the crypto market and this could bring further losses for ETH as we are about to read in the ethereum news today.
Crypto analysts are now explaining that Ethereum is caught in a technical formation that could lead to a new low of $140 in the near-term but they also explain that the price level may spark the next bull run that will send the price surging higher. At the time of writing, Ethereum is trading down more than 3 percent at its current price of $12 which marks a notable drop from the daily highs $180 that were set a while ago. What is also very important is that Ethereum does currently have strong fundamentals in spite of the current bearishness as the popular analyst Spencer Noon noted that a significant amount of ETH is currently locked up in DeFi, meaning that the trend is leading to a lower circulating Ethereum supply.
Assuming that the DeFi trend will likely continue to garner widespread support and adoption, this may mean that Ethereum could be temporarily removed from circulation and this will reduce the circulation supply and creating supply-side pressure. The Crypto Dog, a popular crypto analyst on twitter explained that the ethereum price appears to be caught in a long falling wedge which may be meant that it will drop as low as $140 in the near term. He explained that in the coming few hours and days, we will likely see whether or not the previous technical formation will play out or it will be able to surge higher based on the fundamentals. The popular crypto analyst explained:
“That mini-falling wedge played out on $ETH, looks like a larger one may be forming now. Unclear yet if we get another “big drop” across the board, but if we do, I’m eyeing ~$140 to stack up a FAT long. If we break out and start trading above $190 again I’ll long to new highs.’’
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