Ethereum’s Price Plunge: Is $1,060 the New Normal? 🤔💸

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<a href="https://zarusd.com/eth-usd/">Ethereum</a>‘s Price Plunge: Is $1,060 the New Normal? 🤔💸

Ah, dear reader, the tale of Ethereum unfolds like a tragic opera, where the price, once a soaring lark, now flutters in the shadows of despair. The cryptocurrency, much like a hapless hero in a Turgenev novel, finds itself ensnared in a prolonged bearish trend, leaving investors and analysts alike wringing their hands in existential dread. Recent technical analysis, with all the gravitas of a somber philosopher, suggests that our dear Ethereum may plummet further, perhaps to the dismal depths of $1,060. What a delightful prospect! 🎭

Ethereum’s Repeated Rejections at the $4,000 Threshold

According to the astute observations of Mags, Ethereum has faced the $4,000 resistance level thrice, each time with the grace of a clumsy dancer. Each rejection has led to a further decline, akin to a character in a novel who simply cannot escape their fate. The latest downturn has pushed our beleaguered cryptocurrency below its mid-range level, trading now beneath an upward-sloping trendline support that once held the promise of better days.

Analysts, those modern-day soothsayers, warn that Ethereum could continue its descent unless it manages to reclaim the lofty heights of $2,500 in the near term. Should it fall further, the abyss of $1,060 beckons, where the range low lies in wait. The absence of strong support is like a cruel twist of fate, suggesting that downward movement remains a strong possibility. How delightful! 😅

Market data, that ever-reliable oracle, indicates that Ethereum remains under the oppressive weight of bearish pressure. The altcoin has yet to show signs of establishing a solid bottom, raising the specter of prolonged losses. Without a robust recovery above resistance levels, the bearish trend may persist, much to the chagrin of hopeful investors.

ETH/BTC Pair: A Dance of Despair

Moreover, the ETH/BTC trading pair has been underperforming, signaling a weakness in Ethereum’s relative strength against Bitcoin. The Relative Strength Index (RSI) on the three-day chart languishes below 30, a level that often indicates oversold conditions. Yet, history teaches us that oversold levels do not always herald a definitive bottom for Ethereum’s price. How ironic! 😏

Since mid-2024, ETH/BTC has recorded multiple breakdowns, with declines of 13%, 21%, 25%, and 19.5%. The 50-day and 200-day Exponential Moving Averages (EMAs) continue their downward trend, reinforcing the bearish outlook. Analyst CarpeNoctom, with a name that suggests nocturnal wisdom, has pointed out that ETH/BTC has yet to confirm a bullish divergence on its weekly chart, further suggesting that ETH price could struggle to find support. What a delightful conundrum! 🥴

ETF Flows and the Dwindling On-Chain Activity

Since the dawn of this year, Ethereum-based exchange-traded funds (ETFs) in the US have seen consistent outflows, as if the very essence of interest is evaporating. In March 2021, the net assets of spot Ether ETFs decreased by 9.8%, amounting to a staggering $2.54 billion. Meanwhile, Bitcoin ETFs suffered only a slight decrease of 2.35% to $35.74 billion. This divergence indicates that institutional fund managers are losing interest in Ethereum, much like a lover who has grown weary of their partner’s incessant complaints.

Furthermore, there is a noticeable decline in network usage, evidenced by on-chain data. The median gas fees have plummeted on the mainnet, fluctuating at a mere 1.12 GWEI in March. This is a far cry from the previous calendar year, suggesting that transactions are becoming as rare as a Turgenev character’s moment of happiness.

Technical analysts, those harbingers of doom, believe that Ethereum’s future performance is not looking bright as it remains below some key levels. The next level of support is at $1,060, which blends seamlessly with the lower limit of the long-term trading range. How poetic!

As of this writing, the altcoin is trading at $1,923.03, a staggering

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2025-03-19 07:16