• Ethereum’s price recovered to $1,600 on January 20, but crashed to $1,527 afterwards.
• According to experts at Santiment, the FUD around ETH may feed a bullish narrative for the asset.
• Popular cryptocurrency analyst Michael van de Poppe predicted a further decline in the price of Ethereum to around $1,450.
The price of Ethereum, the world’s second-largest cryptocurrency by market capitalization, recovered to $1,600 on January 20, wiping out its losses from the collapse of the FTX exchange. However, after reaching a recent high of $1,638, the price crashed to $1,527. According to experts at Santiment, the FUD around ETH may feed a bullish narrative for the asset. The large profit-taking transaction ratio increased on January 20, and 21% of conversations on social media sites involved the currency. Data from Whale Alert also indicates that a whale today dumped 24,768 ETH worth $38 million into the cryptocurrency exchange Coinbase.
Popular cryptocurrency analyst Michael van de Poppe predicted a further decline in the price of Ethereum to around $1,450. Van de Poppe believes that the critical support level of $1,550 may see some rebounding in the price of Ethereum, but there is still potential for further declines. He also warned that if Ethereum fails to hold the $1,450 support level, the price could drop to $1,300.
Despite the increasing FUD surrounding Ethereum, some analysts remain optimistic about the future of the asset. According to one analyst, Ethereum is still in a good position to break out of its current consolidation range and reach a new all-time high. He suggested that, with the increasing institutional interest in Ethereum, the asset is likely to continue its uptrend in the near future.
Overall, while the FUD around Ethereum may cause some short-term dips in the asset’s price, the long-term prospects remain positive. With increasing institutional interest and the possibility of Ethereum reaching a new all-time high, the asset is likely to remain bullish in the coming weeks.