• Ethereum’s price recovered above $1,600, but experienced a crash to $1,527 afterwards.
• According to Santiment, the FUD around ETH may in the medium term feed a bullish narrative for the asset.
• Popular cryptocurrency analyst Michael van de Poppe predicted a further decline in the price of Ethereum to around $1,450.
The cryptocurrency market has been highly volatile as of late, with many tokens experiencing wild price fluctuations. Ethereum, the world’s second largest cryptocurrency by market capitalization, is no exception to this. On January 20th, the price of Ethereum recovered above $1,600, wiping out its losses from the collapse of the FTX exchange. However, after reaching a recent high of $1,638, the price crashed to $1,527.
According to experts at Santiment, the FUD around ETH may in the medium term feed a bullish narrative for the asset. Data from Whale Alert indicates that a whale today dumped 24,768 ETH worth $38 million into the cryptocurrency exchange Coinbase. Over the previous three days, whales moved ETH worth around $200 million to liquidity pools and crypto exchanges. Santiment also noted that the large profit-taking transaction ratio increased on January 20th and that 21% of conversations on social media sites involved Ethereum.
Popular cryptocurrency analyst Michael van de Poppe predicted a further decline in the price of Ethereum to around $1,450. He noted that the critical support level of $1,550 may see some rebounding in the price of Ethereum, but this could be short-lived if the market sentiment doesn’t improve. He also said that Ethereum could potentially reach $1,720 in the near future if the market sentiment is positive.
Despite the recent FUD and volatility around Ethereum, many investors and traders remain optimistic about its long-term prospects. Ethereum’s blockchain technology and its wide range of applications have made it one of the most popular and widely used cryptocurrencies in the world. As long as Ethereum continues to develop and build upon its technology, it is likely to remain a popular asset in the cryptocurrency market.