Bloomberg’s analyst Mike McGlone recently posted on X, drawing attention to Ethereum’s weakening position, suggesting it could act as a “canary in the coal mine” for the entire cryptocurrency market.
McGlone pointed out that if Ethereum falls to the $1,000 level, it could signal a broader market downturn, as other assets could follow suit.
In recent weeks, Ethereum has seen its momentum evaporate. The current conditions, along with external pressures like the US-China trade conflict, make further declines toward $1,000 seem plausible. With the ongoing trade tensions, especially President Trump’s imposition of retaliatory tariffs, the cryptocurrency market remains highly volatile.
Ethereum’s Oversold Indicators Point to Potential Rebound
Despite the worrying outlook, Ethereum’s chart provides some hope for traders. The altcoin is currently showing signs of being oversold, especially on its one-day chart. ETH’s Relative Strength Index (RSI), which is around 25, is deep in oversold territory, indicating that the market might be overstretched and primed for a recovery.
Additionally, the 30-day moving average (orange line) has dipped significantly below the 200-day moving average (blue line), which historically suggests that a rebound is on the horizon. This setup reflects the technical potential for Ethereum to regain upward momentum in the near future.
Longer-Term Outlook: Waiting for the Final Bottom
Looking at the one-week chart, the picture is somewhat similar, though it suggests a longer wait before Ethereum hits its final bottom. The weekly RSI is approaching the 30-mark, signaling that a price reversal could be near, though it’s not there yet. Additionally, the 30-week moving average is still above the 200-week average, pointing to the possibility of further consolidation before a potential recovery.
This aligns with the broader market trends, which have been deflated due to US President Trump’s aggressive tariff policies. While there’s hope that the US might negotiate more trade-friendly deals with other nations in the future, such an outcome remains uncertain. This uncertainty could keep Ethereum and other cryptocurrencies under pressure, making a drop to $1,000 a real possibility in the short term.
Outlook: Ethereum’s Fate Hinges on External Factors
While Ethereum’s chart signals potential for a rebound, external factors like ongoing trade disputes and market sentiment will heavily influence its future price action. Traders and investors will have to keep a close eye on these developments as they could shape Ethereum’s trajectory in the weeks ahead.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/ethereum-price-prediction-from-bloomberg-analyst/