Stock markets and cryptocurrencies have been experiencing tough times with prices dropping precipitously. ETH is no different and it looks like the price will drop below the $2000 threshold, according to a well-known analyst. The analyst who uses the name Wolf, shared his opinion on ETH’s outlook which is looking down, on March 7th.
ETH’s price had gone up and touched $2650, which was 3% higher than its previous level. After staying there for a short intraday period, Wolf says that he fully anticipates the prices to keep declining. The analogy used by him to describe what was going on with ETH prices is a symmetrical triangle- a classic analysis pattern used by analysts. It reflects price fluctuations between two converging and specific trendlines.
ETH prices have been in this triangular pattern since the start of 2022. And to add to this, the price of ETH has also dropped by over 50% since its November 2021 high of $4850. The assumption then that this pattern looks bearish wouldn’t be too far from the truth. His prediction and bearish outlook come in spite of a recent rise in buying by rich investors.
The number of overall addresses holding ETH between 1 to 10 million indicates that there is a 2.2% accumulation of the total minted supply. This accumulation has taken place in the last 6 months according to data provided by analytics firm, Santiment. This buying activity took place just about the time ETH prices experienced correction. The suggestion that people were buying during the dip is not far from the truth.
Analysts are still bullish about ETH prospects and the reason for this is the transition from PoW to PoS later this year. This will result in a huge reduction in transaction costs to mint ETH, which is the crypto’s major drawback.