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.