Thomas Daniels
The market circumstances for Ethereum are getting close to historically oversold levels, which are evocative of the sharp declines observed during previous cryptocurrency crises. Ethereum, according to Qiao Wang, co-founder of web3 accelerator Alliance DAO, is still the most practical blockchain for institutional adoption in spite of this.
The market is concerned about Ethereum’s oversold signal.
There are concerns that Ethereum (ETH) may not be able to reach its previous all-time high before the current bull cycle ends since it is getting close to oversold territory. As of March 13, according to data from Crypto Waves, ETH has entered a weak zone and was headed toward oversold territory, joining altcoins like Maker (MKR), Lido DAO (LDO), and TRON (TRX).
According to Qiao Wang, the current state of ETH is similar to previous market bottoms, such as the fallout from the 2016 DAO breach, the 2018 deep bear market, and the 2021 Terra crash. Although Wang admits the uncertainty surrounding ETH’s possible collapse prior to a reversal, he thinks that the price at present levels makes it an appealing investment.
As investor activity declines, the outlook remains pessimistic.
Ethereum has already lost money for the third week in a row, and investor mood is still low. The number of daily active Ethereum addresses fell to 293,000 on March 12 from over 717,000 earlier this year, according to data from Santiment. Network activity has decreased, which is indicative of cautious market participation.
According to technical indicators, ETH’s path of least resistance is bearish, with a $1,500 initial fall objective. The cryptocurrency might drop 45% from its current levels if it breaks below this level and moves toward the next psychological support at $1,000. The bearish scenario, on the other hand, would be rendered useless by a rise over the crucial support-resistance level of $2,500.
Wang emphasizes Ethereum’s position as the most likely platform for institutional adoption in the blockchain industry and expresses optimism about the cryptocurrency’s long-term prospects despite the current slump.
