Ethereum has seen all of its recent upswings grow weaker throughout the past several months
Underlying weakness amongst ETH buyers could be enough to lead the cryptocurrency to as low as $40-50 by the end of 2021
Ethereum, like Bitcoin and most other cryptocurrencies today, has further extended the downwards momentum that was first sparked yesterday when the crypto lost its recent momentum and declined from highs of $190.
This current weakness appears to be directly correlated to that of Bitcoin, and one analyst is noting that he anticipates ETH to ultimately decline to as low as $40-50 by the end of the year.
Ethereum Flashes Signs of Underlying Weakness
At the time of writing, Ethereum is trading down just under 2% at its current price of $179, marking a slight extension of the downwards momentum incurred yesterday.
This bear-favoring short-term trend came about after the crypto faced a firm rejection in the time following its rally up to $190, with the rejection here suggesting that bulls don’t currently have enough support to catalyze a sustainable uptrend.
This present weakness also comes as Bitcoin risks losing the support it has established around $7,000.
One analyst mused a highly bearish possibility in a recent tweet while looking towards Ethereum’s USD trading pair, explaining that each bounce has grown weaker throughout the past couple of years.
To him, this signals that ETH has yet to see its final capitulatory drop, which could lead the crypto to the $40-50 region by the end of the year.
“ETH / USD 1W TF – As is evident, every bounce is getting weaker. Nothing about this structure to suggest we have broken macro downtrend. I believe we will range for some time, we can make money shorting and longing but my long term Ethereum target is $40-$50 by EOY,” he stated.
Image Courtesy of Escobar
ETH’s Path to a Long-Term Bottom Grows Clearer
The same trader also offered some thoughts on Ethereum’s short-term technical situation while pointing to its 3-day chart, explaining that he believes the ideal path to a long-term bottom will come about after a rejection at a key trendline sparks a decline to $40.
“ETH / USD 3D TF – This is the kind of price action I would want to see before calling a true bottom, until then the bigger picture is still bearish,” he said while pointing to the chart seen below.
Image Courtesy of Escobar
This potential plunge lower likely won’t happen independently of the aggregated crypto market and may be perpetuated by Bitcoin seeing weakness in the months ahead.
Featured image from Unsplash.
Source: Bitcoinist News