Ethereum (ETH) prices have fallen sharply, dropping to $1,540 in the past 24 hours, hitting that level for the first time since March 12, 2023. This decline can be attributed to the recent surge in bearish sentiment, especially due to the upcoming FTX asset liquidation, which is expected to inject about $192 million worth of Ether into the market. However, the recent drop in Ethereum prices has been expected for some time, especially after the second half of the cryptocurrency bear market rebound hit a roadblock.
Market intelligence platform Santiment analyzed Ethereum's price action and said that bearish forces may continue to increase in the coming weeks. Santiment's analysis pointed out that the flow of a large number of stagnant Ether in recent days indicates that bears may gain an advantage. This is consistent with the common observation that when the average lifespan of the dollar decreases, asset prices tend to fall.
How far can the price of Ethereum fall?
The price of Ethereum has been a disappointment for many long traders who had hoped for a rebound above $2,120 following the Shanghai hike earlier this year. Given the bearish trend confirmed in August, the price of Ethereum is likely to continue to fall and could reach the 2022 bear market lows of around $1,000. However, Ethereum, a leader in the smart contract and DeFi ecosystem with a total value locked (TVL) of over $20 billion, may find temporary support around $1,372.
As long as the weekly death cross between the 50-day and 200-day moving averages remains in place, Ethereum’s price is expected to remain trapped in a bearish sentiment.
