Why the Ethereum price collapses? ETH will decrease to $ 1300

ETHEREUM (ETH) has spent a difficult time since last month. Over the past week, it decreased by 16 %, reaching $ 1861 today, from an increase during the day, amounted to $ 2,138. This is its lowest level since December 2023. The question that everyone asks is, will ETH recover from this?

according to GlassnodeOnly 50 % of Ethereum holders still make profit, compared to 82 % at the beginning of the year.

Some investors lose their money, while some choose to sell it at a loss, causing low price.

Looking at the monthly graph on Tradingview, the price does not work great. It has been traded without the Ichimoku cloud since January 25, a sign that the market is still a decline.

Meanwhile, $ 1.8 billion in stock exchanges has remained in the largest external flow since December 2022 last week, according to Lookonchain.

Usually, when ETH investors move to private portfolios instead of exchanges, this means that they are detained in the long run. This can indicate a possible recovery of a possible price.

Will ETH be disrupted to $ 1300?

If the ETHEREUM price continues, it may reach $ 1,300, which is another support level in the monthly time frame.

But if the demand rises, the ETH can rise to $ 4,045, which is 120 % of the current price level. However, this is not certain because the market is still dominated by bears.

As of now, the most likely scenario for ETH is the support test at $ 1700; If it fails, there will be a catastrophic liquidation, and the market will need difficulty in recovery.

Also read: Bitcoin fell to a lower