Ethereum (ETH) has been closely following Bitcoin’s price action in the recent market correction, with its value slipping more than 11 percent in the past three days. Currently trading at around $3,292, Ethereum has seen over $86 million liquidated from its leveraged market in the last 24 hours. The fear and greed index has also dropped to 55 percent from 69 percent, indicating a bearish sentiment in the market.
Several factors have contributed to Ethereum’s price drop, including low demand from whales and institutional investors. While Bitcoin’s supply on centralized exchanges has decreased, Ethereum’s has increased to 15.88 million. Additionally, US spot Ether ETFs experienced a net cash outflow of $159 million on Wednesday, with no issuers registering a net cash inflow, signaling a lack of demand.
In a surprising move, the Ethereum Foundation sold about 100 ETH, further adding to the bearish sentiment surrounding the cryptocurrency. Despite the current downturn, crypto analyst Ali Martinez believes that a potential drop to $2,900 could create the most bullish setup for Ethereum’s price in the near term. This could lead to the formation of an inverted head and shoulders (H&S) pattern, with a midterm target of around $7k.
On a positive note, Ethereum’s price has already broken out of a multi-year falling logarithmic trend in the weekly timeframe, hinting at a potential rally towards a new all-time high in the future.
Looking ahead, Ethereum’s value in 2030 remains speculative, with estimates ranging from $10,000 to $50,000 based on market conditions, technological advancements, and adoption rates. As of January 9, 2025, Ethereum is trading at approximately $3,292, reflecting the ongoing market correction.
Despite the recent price drop, Ethereum’s long-term potential as a decentralized platform with diverse use cases makes it a promising investment option. However, investors should be mindful of short-term market volatility and carefully consider their investment strategies. Stay informed with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more to make informed decisions in the ever-evolving crypto landscape.