Ethereum Could Plummet Below $1,000: Bloomberg

Ethereum Could Plummet Below $1,000 According to Bloomberg Technical Experts.

Ether remains at the mercy of the bears and the rest of the market – a trend that has persisted in this cycle. The second largest cryptocurrency by market cap has been hit hard by the unyielding bear market. A Bloomberg analysis forecasts a fall below $1,000 for Eth despite its recent comeback from the weekend’s lows.

Bloomberg analysts forecast a crash below $1,000 for Ethereum

Bloomberg technical analysts are expecting the price of Ether to decline further. This is largely due to the volatility of Ether’s price in an otherwise bearish market condition. “Technical indicators on momentum and price trends show that the token’s tumble from a peak of about $2,000 in mid-August to the current zone near $1,500 is likely to continue,” the Bloomberg report says.

Ether has been largely outperforming Bitcoin of late, as sentiments in the Ethereum community remain bullish due to the upcoming Merge. Notwithstanding, this has not granted the asset any immunity to the recent unpropitious macroeconomic conditions.

Ether had established promising support at its 50-day moving average. Nonetheless, following the market downturn, the asset broke below this support, indicating risks of a further collapse. Katie Stockton, a financial consultant Fairlead Strategy co-founder, highlighted these risks. She further pointed out the weekly stochastics’ bearish signal, which is declining for the first time in 5 months.

Bloomberg writes: “Ethereum has broken down below initial support from its 50-day moving average, increasing downside risk with short-term momentum now negative, the weekly stochastics have a downturn for the first time since April, suggesting a retest of support at about $1000 is likely in the coming days.”

Ether’s fall to $1,429 on Monday was its lowest level in August

Following the 2-month peak of $2,022 on August 14, Ethereum experienced a steady decline to a low of $1,535. Despite this bearish push, the asset was well above the $1,500 support zone. ETH saw some gains from August 22 to August 25, reaching a high of $1,718. However, this relief rally was short-lived as it met hostility shortly after.

As the market declines began on August 25, Ether broke below the $1,500 support the next day. The unfavorable speech from Federal Reserve Chair Jerome Powell further aggravated the whole situation. Ether fell to $1,429 on Monday – its lowest level in August. 

The asset has since then made some promising movements, but these could be hitting a roadblock soon. If the Bloomberg analysts’ forecast materializes, Ether could see itself below its major support of $1,000 for the first time in over two months. ETH has gained by 5% in the past 24 hours at the time of writing and currently trades at $1,570.

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