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The percentage of Ethereum addresses in profit has plunged to the lowest level since April 2020, according to data provided by cryptocurrency analytics platform IntoTheBlock.
The price of Ether slipped to $1,014, the lowest level since late January 2021 on the Binance exchange.
As reported by U.Today, Galaxy Digital CEO Mike Novogratz predicted that the $1,000 level would hold.
With that being said, it is worth noting the leading altcoin collapsed by a whopping 94% during the 2018 bear market, which means that bears could push it much lower if history repeats itself this time around.
T3 Trading Group's Scott Redler, who accurately predicted that Ether would drop below the $1,400 level, says that he had bids down all the way to $720.
Prominent cryptocurrency trader Scott Melker recently tweeted about buying more Bitcoin and Ether for the "long bags."
Ethereum captured the spotlight in 2021 because of its sprawling decentralized finance ecosystem and the non-fungible token mania. Yet, the cryptocurrency has seemingly lost its luster this year, underperforming Bitcoin.
DefiLlama data shows that Ethereum's total value locked (TVL) has plunged by 30% within just a week.
The overall sentiment is also turning against the NFT space after the floor prices of the most well-known collections nose-dived. As reported by U.Today, Microsoft co-founder Bill Gates said that NFTs were based on the "greater fool" theory.
Still, Ethereum bulls are betting on the success of the blockchain's upcoming shift to proof-of-stake, which is expected to finally occur later this year after a slew of delays.