Most cryptocurrencies are now fully in a bear market. Ethereum fell below $1000 for the first time in years as weakness in the market continues. While we did see some slight recovery in 24-hour intraday trading, the overall trend will continue downwards. Here are some of the highlights:
- ETH’s bearish run will continue as the coin attempts to find support at $800
- $1000 was seen as a crucial support zone for ETH
- The coin is unlikely to fetch $1,000 in the next few days.
Are steep losses coming for ETH?
Over the past week alone, Ethereum has seen a 35% drop in value. This is one of the worst weeks for the coin in 2022 and sadly, we have not seen the last of it. At the time of writing, the token was hovering above $950. However, we don’t think the price action will stay there for long.
Instead, ETH will slide as the bears take full control. It may however try to find support at $800. In fact, looking at the chart, the $800 mark has often proven to be very difficult to break through. The bulls are hoping to hold ETH above this until sentiment improves in the market.
But despite this, there are still several fundamental risks that the broader crypto market has to deal with. First, tightening monetary policy means that the era of cheap credit is over. As money is sipped out of the economy, we may see lower flows of capital towards risk assets, including crypto.
When will the bear market end?
The crypto bear market started in early 2022. There were times when analysts felt that most coins may have bottomed out, but it looks like more weakness is yet to come.
ETH could take another 3 months of high volatile trading before it establishes a sustained bull run. But for now, the key to watch is how long it stays above $800. If this support is lost, then we may see massive losses again for ETH.
