Key Takeaways:

• Ethereum faces uncertainty, with potential drops to $1,500 or lower if the bear market deepens.
• Some traders continue accumulating ETH at current levels, expecting a rebound.
• Market sentiment remains divided between bullish hope and bearish caution.

Ethereum’s price movements have sparked intense debate among traders, with many reassessing their positions amid a shifting market landscape. Some investors, who initially expected a rally, have reduced their positions due to weak bullish momentum. Some others are, nonetheless, positive but cautiously, purchasing ETH at lower prices expecting a market rebound.

EGRAG CRYPTO said he initially bought ETH around $3,750, expecting a $6,000 or $7,500 breakdown. Poor technical readings, however, led him to cover his position at $3,850, and he will only get back in if Ethereum breaks down into the expected M-pattern levels.

This is a reflection of the growing uncertainty regarding ETH’s trajectory, as the lack of strong upward pressure creates bearish sentiment. This strategy highlights the growing uncertainty surrounding Ethereum’s trajectory, as the lack of strong upward momentum fuels bearish concerns.

Meanwhile, another market observer pointed out that ETH has been in a correction phase since March 2024. The analyst noted a clear five-wave structure from the June 2022 lows, suggesting that ETH’s downward movement aligns with historical patterns.

Despite the bearish outlook, the trader remains confident in ETH’s long-term potential and continues accumulating at current levels, seeing it as a favorable opportunity.

With Ethereum struggling to find solid ground, there are analysts estimating potential bottom levels at $1,500. The level appears suitable given the recent price plunges, with ETH shedding over 50% in the past three months. However, market sentiment is divided as to whether ETH is nearing the end of a correction or merely beginning a longer-term bear cycle.

If Ethereum is at the end of its bear cycle, a rebound may be in the cards, supported by Bitcoin’s strength. Or, if we are starting a long bear cycle, there are forecasts that ETH may fall much lower, to as low as $200 to $400. This would align with the previous bear cycles, where ETH had over 90% total drawdowns.

Investors are gearing themselves to endure losses, understanding that bear markets have the ability to push prices below what is anticipated. Some point to the importance of risk management, warning traders against being overly exposed to volatile instruments.

As opposed to the dire forecasts, Ethereum’s price action is full of danger and opportunity. Traders are busy weighing the chance that ETH’s recent drop is just a minor blip or the start of a deeper correction. Some traders are adopting a wait-and-see approach, waiting to re-enter only on better prices. Despite Ethereum’s long-term prospects being tied to broader adoption and market cycles, short-term market fluctuations still have an effect on trading.

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