The second-largest cryptocurrency has been severely damaged by the prolonged bear market, closing Q2 firmly in the red. Even more striking is that this marks the third consecutive quarter of losses for ETH – something unseen in the asset’s history and a clear signal of how persistent the current downturn has become.

Analysts speculate that bulls might have to endure more pain in the near future, with some projecting a price crash to as low as $1,000.

The Bears Take Total Control

It was last August that ETH climbed to a new all-time high of almost $5,000. Since then, it has headed south and currently trades at around $1,560 (per CoinGecko), representing a whopping 70% decline from the historic peak.

Weak market conditions and seasonal factors suggest the asset may experience a further short-term plunge. One should keep in mind that July has rarely been a favorable month for Ethereum, as it has finished the period in the red six out of the last ten times.

The analyst who uses the X moniker Ted noted that ETH has been holding up better than BTC lately, but warned that the former isn’t out of the woods yet. He paid special attention to the $1,700 level, arguing that if the asset fails to reclaim it, the probability of setting a new low will rise significantly.

Crypto with Haris ₿ addressed the increasingly popular predictions that ETH could plunge to $1,000 during this cycle, adding that such an extreme downside scenario is far less plausible than many fear.

“Ethereum has already been one of the hardest-hit major coins this cycle and is now building a strong base around the $1,500-$1,600 zone. Even with another Bitcoin flush, I think the realistic downside is around $1,200-$1,300. Could we go below $1,200? Maybe. But I think the risk of trying to catch that exact level is much higher than people realize,” he stated.

Meanwhile, the recent whale behavior strengthens the bearish outlook. Ali Martinez revealed that large investors sold around $900 million in ETH over a single week, while the analytics platform Lookonchain reported that an anonymous market participant cashed out almost 2,500 coins, incurring a major $4.33 million loss.

Some Bullish Signals

Still, it is not all doom and gloom for Ethereum. The number of coins stored on crypto exchanges remains quite close to the ten-year low recorded in June: a development that reduces selling pressure.

Moreover, ETH’s Relative Strength Index (RSI) continues to hover around 30, indicating that the asset has entered oversold territory and could be due for a rebound. The technical analysis indicator ranges from 0 to 100; anything above 70 is considered a warning of an impending pullback.

Source: CryptoPotato