ETH Could Hit Bottom
Coincodex, a crypto trading, and custodial platform have made an analysis of Ethereum’s near future price projections. The Crypto platform’s analysis suggests that in terms of USD, Ethereum’s value may drop below $1,000.
For this prediction, Coincodex has identified more than a dozen technical indicators which have the potential of making the prediction come true.
Coincodex Analysis of Ethereum
As per Coincodex’s analysis, on 10th December 2022, Ethereum may lose value massively. The firm suggests that on the day the value could drop to a price of $922.66.
It may however be noted that currently, Ethereum is trading at a price range of $1,230. So what Coincodex is suggesting is that Ethereum may likely lose approximately 25% of its value in less than 36 hours.
Coincodex’s analysis report notes that from 5th November to 5th December 2022, Ethereum’s value has declined by almost 22%.
Similarly, the report further notes that in the past three months from 5th December, Ethereum lost a total of 23% in value.
Evidence of Bearish Sentiment Exists
It has been suggested by Coincodex that the negative outlook in Ethereum remains there. While discussing this negative outlook, Coincodex explained that Ethereum’s medium-term trend indicates a low of at least 22.81.
As regards long-term trends, Coincodex suggests that the same is also negative and indicates a 69.28% value reduction since 5th December 2021. It may be noted that last year on 5th December 2021, Ethereum was swapping hands at $4,220.95.
In the past year, Ethereum saw its value rise to its highest peak ever i.e. $4,862.24 which was recorded on 9th November 2021. Since then has lost roughly 75% of its value and continues to remain bullish even to date.
Coincodex noted that more than 50% of the Ethereum market is bearish. In addition, there are more than a dozen indicators out of 28 which support a 50% bearish outlook, claimed Coincodex.
Consequently, the price may drop as predicted. However, Coincodex also claims that Ethereum’s value dropping below $10K would be for a very short-term i.e. less than 24 hours.
Ethereum’s Denial of Going into Bottom
Despite being under-estimated, and against the odds, Ethereum is denying going to the bottom. Though negative outlook figures are undeniably alarming and scary, Ethereum’s resistance is to be appreciated.
On the day when Coincodex predicted Ethereum’s value to be less than $1,000, Ethereum earned some promising gains. Instead of falling, Ethereum’s value increased and ended the day at an intraday high of $1,019.56.
Ethereum market in terms of USD may be showing a 50% negative impact but it isn’t the only source from which Ethereum draws impetus.
In fact, the NFT market also supplies positive sentiment to the Ethereum market and in the past two weeks, NFT sales volume has increased.
As always, 2-week NFT sales volume discloses that almost 90% of such sales were carried out on the basis of Ethereum.
Another major support for Ethereum comes from Binance US’s side. The exchange has announced it is not going to charge transaction (gas) fees on Ethereum transactions anymore.
This is also very helpful for the NFT sector that is utilizing the Ethereum technology. It takes ETH to mint an NFT that also incurs processing fees.
With the new update from Binance US, the users will only be paying the actual amount for minting the NFT and no fees will be charged.
Other Factors Impacting Ethereum Market
Yet there are other notable factors that could play a negative role in affecting the Ethereum market. For instance, the red flags which are evidenced in the Ethereum blockchain censorship have immense potential of affecting the price.
Similarly, the enforcement of compliance from the department of Foreign Assets Control, USA could also impose a negative impact on the market.
However, the majority of crypto analysts and economists deny the findings compiled by Coincodex in its Ethereum analysis report.