Ethereum News: ETH Struggles Below $2,000 as Bearish Sentiment Persists

Ethereum, the second-largest cryptocurrency by market capitalization, is currently facing significant challenges as it trades below the crucial $2,000 mark. Here’s a closer look at the latest developments and potential implications for investors.

Ethereum Struggles Below $2,000 Mark

Ethereum (ETH) is currently trading below the crucial $2,000 mark, struggling to gain momentum after days of selling pressure and consolidation around $1,900. The broader crypto market remains under heavy bearish control, causing ETH to lose over 57% of its value. With Ethereum now below a multi-year support level, this zone could flip into strong resistance, further complicating any potential rebound. Traders are closely monitoring $1,870 as critical support and $2,050 as the major barrier that ETH must reclaim to start a recovery rally.

Ethereum’s Future in Jeopardy Due to Lack of Leadership, Ex-Engineer Warns

A former Ethereum Foundation engineer, Harikrishnan Mulackal, has expressed concerns about the platform’s future. He warned that a lack of clear leadership is slowing down critical development. Mulackal noted that Ethereum’s upgrade process has become sluggish, with only one major Ethereum Virtual Machine (EVM) change proposed in five years. He believes that while decentralization is a key strength, it has also made it difficult to push through necessary changes. The only proposed EVM upgrade, transient storage, was almost scrapped at the last minute. Without a more structured approach, Mulackal warns that the network could struggle.

Ethereum Price Prediction: Morgan Stanley Maintains $15,000 Forecast

Ethereum (ETH) price is down over 50% after mid-December 2024, slipping below $1,900. Analysts point out parallels to historic oversold conditions, such as the 2021 Terra collapse and 2016 DAO hack, which followed with explosive recoveries. The 3-year Stochastic RSI is now in oversold territory, a signal which has preceded 300% plus rallies. Morgan Stanley sticks to a target of $15,000 for Ethereum.

Ethereum Price Analysis: Potential Rebound or Further Downside?

Ethereum’s price has been moving sideways over the past week, struggling to recover. The daily chart remains bearish with the price hovering around the $1,900 support area. A breakdown could target the $1,600 support zone, while a decisive break above $2,000 could shift momentum toward $2,200. The RSI is in oversold territory, suggesting a short-term bounce could occur.