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Ethereum (ETH) is troubled as its metrics keep plummeting amid a broader market drawdown. At the time of writing, Ethereum is down by 5.90% in 24 hours to $3,338.93, a drop that has extended its decline over the past week to 8.65%.
Ethereum's uncertain growth path
Commenting on the current outlook for Ethereum, top market analyst Ali Martinez shared data from crypto analytics platform IntoTheBlock (ITB) showing how Ethereum has no major support on its sliding path.
Martinez noted that Ethereum losing its grip on the $3,460 support zone marks a major strain that puts the coin’s bulls in an uncomfortable position. If the slump is left unchecked, Martinez predicts that the Ethereum price could fall as low as $2,850.
#Ethereum dropping below $3,460 is a problem for the bulls! Given the lack of support, it increases the chances for a further $ETH correction toward $2,850 or lower. pic.twitter.com/dFpnpZtBVM
— Ali (@ali_charts) April 2, 2024
The chart he presented, as seen above, shows that a total of 4.97 million ETH is in the money (or in profit), a figure worth $16.68 billion, or 33% of the total ETH in circulation. The recent drawdown has pushed 10 million ETH worth $33.52 billion, or 66.31% of the coins in circulation out of the money.
For Ethereum to breach its profitability equilibrium price, the price will have to trade in the $3,252.30-$3,352.58 range.
Ethereum uncertainty triggers dark optimism
Besides the broader impact of the market on the price of Ethereum, internal uncertainties, including the reported probe into the Ethereum Foundation by an unnamed state authority, are dampening sentiment.
There is also doubt regarding the prospects of the spot Ethereum ETF product, as the United States Securities and Exchange Commission (SEC) is reportedly looking to classify ETH as a security.
While the odds of approval of this product have plummeted, industry leaders like BlackRock’s Larry Fink are optimistic that any securities designation would not greatly impact the chances of ETF approval.