- Ethereum (ETH) hits a 7-month low of $1528.
- Standard Chartered predicts ETH will reach $8000 by 2026.
Ethereum, the second-largest cryptocurrency by market capitalization, recently reached a seven-month low at $1,528. In the past three months, ETH has been under intense bearish pressure, leading to a sustained downward trend. Despite a brief attempt by bulls to push the price above the $1,750 resistance level in early October, the momentum proved to be short-lived.
Currently, ETH is trading at $1,543, reflecting a 2% decline over the past 24 hours. During the same timeframe, trading volume has seen a modest 5% increase, reaching $5 billion.
The recent weakness in ETH can be attributed to multiple factors. The ongoing conflict in the Middle East, where Hamas launched a surprise attack on southern Israeli towns, has impacted the overall crypto market sentiment. And the September FOMC meeting held on October 11 has added to the uncertainty.
Meanwhile, in terms of social media activity, crypto data aggregator Santiment reports an increased level of Ethereum discussions on various platforms such as X, Discord, Telegram, Reddit, and 4chan since late September. There has also been a spike in age consumed, indicating that previously dormant ETH has been on the move. This heightened social dominance is likely due to the bearish price performance.
On an optimistic note, Standard Chartered, a British multinational bank, has expressed a bullish outlook for Ethereum. The bank predicts that the altcoin could reach $8,000 by 2026, representing a substantial 400% increase from its current value.
Geoff Kendrick, who leads FX and Digital Assets Research at the firm, further stated, “We think the path higher for ETH prices may take longer than for BTC, but we see ETH eventually reaching a higher price multiple than BTC relative to current levels (5.0x versus 3.5x).”
A Bearish Reversal Ahead?
A closer analysis of Ethereum’s current price movements indicates a bearish trend. The 50-day exponential moving average (EMA) has risen above the current trading price, settling at $1,643. Additionally, the daily relative strength index (RSI) stands at 35, signaling that Ethereum is approaching oversold territory.
ETH Price Chart, Source: TradingView
With the support level at $1,585 already breached, the next potential testing point is $1,435. A further decline may see the price test the $1,140 support area. On the other hand, if bulls manage to drive the price above the $1,645 resistance level, a potential rally toward $1,735 could be on the cards.
