Ethereum May Hit a 3-Digit Price Mark Soon, Here’s Why
A sudden outflow of significant customers from crypto bank Silvergate over the past few days has raised concerns about its viability, and key cryptocurrency prices have fallen over the weekend as a result.
An increase in liquidations was recorded as a result of the price decline. The 2nd of March saw the closing of long positions in the cryptocurrency futures market worth more than $210 million, according to the data analytics website Coinglass. It’s at its highest point in a month.
According to a popular cryptocurrency analyst, Ethereum (ETH) may still spiral downward until it reaches its bear market bottom. Nicholas Merten, the host of the YouTube channel DataDash, said that after the update, ETH might plummet over 90% from its all-time high, which would bring it down to only a few hundred dollars, if past bear markets are any indicator.
“The long-term ETH to USD pair still has a long way to go. We are right only 67% down from the [highs], we only went about 82%, but if we are doing anything like the traditional bear market, it’s important to realize just how big of a difference 82% down from all-time highs is from, say, 90%.”
The gap, according to him, is significant as it goes from $870 all the way down to roughly $500—and if it experiences something similar to prior bear markets, such as a 92% or 94% fall, one may see ETH drop to only a few hundred dollars.
He said that Ethereum’s price looks weak because it has not been able to break above the $1,600 to $1,800 mark for several months now. The analyst added that Ethereum has a long way to go before it reaches the bottom because it is already 67% below its all-time high.