Ethereum Price Hit Hard With 35% Drop: What This Means for Investors

With bearish sentiment growing in the crypto market, Ethereum’s (ETH) price continues to drop each week. The large-cap altcoin, valued at around $279 billion with a daily trading volume of about $15 billion, has fallen over 35% since July. As of Tuesday’s early New York session, Ethereum was trading at roughly $2,329.

In contrast to Bitcoin, the amount of Ethereum available on centralized exchanges has increased by about 250,000 units over the past two months. This rise points to a drop in demand, especially from institutional investors, as reflected by the poor performance of U.S. spot Ether ETFs.

Ethereum Price Analysis

According to crypto analyst Alan Santana, Ethereum’s price might keep falling in the near term if bearish signals persist. The weekly charts show weak bullish momentum, with both the MACD and RSI indicators in bearish zones.

Additionally, the ETH/BTC pair has gradually been shrinking in the past year, suggesting the altseason has not yet begun and more investors are protecting their capital through Bitcoin and stablecoins. 

Despite the current downturn, Santana notes that a potential relief rally in October or November could break Ethereum’s losing streak in the coming months

Crypto Market Picture

The crypto market might shift soon with the U.S. Federal Reserve expected to announce its first interest rate cuts on September 18. However, experts predict that the market might experience one more decline due to a “sell-the-news” reaction before potentially rebounding in the following months.

Additionally, the outcome of the upcoming U.S. general election could significantly influence the crypto industry’s future direction.

Also Read: China’s Real Estate Crisis Could Trigger A Crypto Crash, Analyst Warns

Is it time to shift your investment strategy away from Ethereum? Tell us what you think.