Bitcoin and altcoins have suffered greatly from the downtrend that began in October and is still ongoing. Ethereum (ETH) has also experienced significant losses, and these losses may deepen further.
Bloomberg senior analyst Mike McGlone stated that Ethereum could fall to as low as $2,000.
Ethereum is giving investors mixed signals as bearish macroeconomic signals clash with record-high on-chain data.
At this point, the seven-day simple moving average of active Ethereum addresses has risen to approximately 718,000. Despite the increase in activity on the ETH network, Ethereum is struggling to break out of its established transaction range.
Given this mixed picture, Mike McGlone believes Ethereum is more likely to retest the $2,000 level than to break above $4,000.
The analyst noted that Ethereum has been stuck in the $2,000-$4,000 range, but recently momentum has shifted towards the lower end of this range.
“Ethereum appears to be moving towards the lower end of the $2,000-$4,000 range since 2023.”
“Especially when market volatility rises again, I think it’s more likely to stay below $2,000 than to rise above $4,000.”
McGlone had also warned about Ethereum’s trajectory last December. In a post from his X account, he stated that his general prediction for ETH was bearish, saying, “Ethereum $2,000 or $4,000? My prediction is that the trend will be downward.”
*This is not investment advice.