Ethereum's price dropped 10% this week, with analysts predicting a possible 50% decline based on the log regression model.
Ethereum’s market cap lost $50 billion, with ICO whales selling off holdings and geopolitical tensions affecting investor confidence.
Vitalik Buterin proposed halving Ethereum’s staking requirement to 16 ETH as the market faces increasing pressure.
Ethereum’s price experienced a significant downturn this week, dropping 10% in just seven days. As of now, Ethereum is trading below $2,400, raising concerns about a potential deeper correction.
Notably, analysts believe that another 50% decline could occur, with the price potentially falling to $1,200. This forecast is supported by the log regression model, which has accurately predicted sharp drops in the past.
Log Regression Model Suggests Further Decline
In addition, the log regression model popularized by crypto analyst Benjamin Cowen, indicates that Ethereum faces substantial downside risk. According to Cowen, whenever Ethereum breaks its support against Bitcoin, the ETH/USD pair tends to fall by 70%.
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Furthermore, with Ethereum already down by 41%, this model suggests a further decline could be imminent. Historical data shows similar patterns, with sharp declines occurring in Q4 2016 and Q4 2019. These trends are now raising alarms that the same could happen by the end of 2024.
Despite some traders expressing optimism about a potential market rally, Ethereum’s current trajectory is causing skepticism. The crypto market had hoped for a strong October rally, often referred to as “Uptober.”
However, ongoing geopolitical conflicts, including the Israel-Iran tensions, have shaken investor confidence. Consequently, Bitcoin and altcoins have both suffered, pulling Ethereum further down. Ethereum’s market cap has dropped by over $50 billion, and ICO whales continue to sell off their holdings, signaling a shift in long-term investor sentiment.
Vitalik Buterin Focuses on the Ecosystem Amid Market Pressure
Amid this market volatility, Ethereum co-founder Vitalik Buterin remains focused on strengthening the ecosystem. Recently, Buterin proposed halving the minimum ETH staking requirement, reducing it from 32 ETH to 16 ETH.
Therefore, this move is seen as an effort to attract more stakers and increase network security. However, the proposal comes at a time when Ethereum faces growing market pressure, and it remains uncertain whether it will influence investor confidence in the short term.
The post Ethereum Historical Data Suggests Potential 50% Price Correction for ETH appeared first on Crypto News Land.
