Ethereum’s Price Drop Today is a Great Opportunity for Crypto Investors – Here’s Why

Ethereum’s (ETH) price has been moving in sync with Bitcoin’s (BTC) recent price action during the ongoing market correction. With a fully diluted market valuation of about $400 billion and a 24-hour trading volume around $32 billion, the large-cap altcoin has fallen over 11% in the last three days. On Thursday, January 9, ETH was priced at roughly $3,292 during the early New York session.

The price drop has led to more than $86 million in liquidations from Ether’s leveraged market over the past 24 hours. The bearish sentiment is clear, with the fear and greed index decreasing to 55% from 69% on Wednesday.

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Major Factors that Caused Ethereum Price to Drop

Ethereum price has suffered bearish sentiment in the past few days amid low demand from whales and institutional investors. As Bitcoin’s supply on centralized exchanges continues to drop, Ethereum’s has instead increased in the last few days to 15.88 million.

On Wednesday, the US spot Ether ETFs registered a net cash outflow of about $159 million. Notably, none of the US spot Ether ETF issuers registered a net cash inflow on Wednesday, signaling low demand.

The low demand for Ether in the recent past coincided with the first ETH sale by the Ethereum Foundation of about 100 ETH. 

Midterm  Expectations

According to crypto analyst Ali Martinez, a potential drop to $2,900 for Ether’s price in the near term should be considered the most bullish setup. Furthermore, Ethereum price against the US dollar will have formed an inverted head and shoulders (H&S) pattern, with a midterm target of around $7k.

In the weekly time frame, Ether’s price has already broken out of a multi-year falling logarithmic trend, signaling a midterm rally towards a new all-time high on the horizon.

The charts may look bearish now, but Ethereum’s long-term playbook still holds plenty of promise.

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