Ethereum Enters Bear Market Following 20% Weekly Decline

Ethereum’s 20% plunge over the past week has pushed its price below the upward trendline established after the Terra collapse. This technical development suggests the end of a three-year bull market, as noted by CoinDesk.

The situation is exacerbated by the breach of the $2100 level, which had marked a point of bear exhaustion in August 2023.

The decline from March 3-9 resulted in the largest losses for the second-largest cryptocurrency by market capitalization since November 2022.

CoinDesk did not rule out the possibility of further asset sales following the trendline break. Prices could potentially fall to the September-October 2023 lows near $1500.

A reversal in dynamics would require a return and consolidation above $2523, CoinDesk concluded.

Earlier, Sonic Labs co-founder Andre Cronje listed factors contributing to Ethereum’s “insufficient success” amid competing ecosystems. Fidelity experts described Solana as a “serious competitor” to the second-largest cryptocurrency. A similar view was expressed by JPMorgan.

As reported, CryptoQuant highlighted that the MVRV metric has entered a zone of strong undervaluation, falling below 1.