Ethereum

Ethereum (<a href="https://finbold.com/cryptocurrency/ethereum/" rel="noopener noreferrer nofollow">ETH</a>), the second-largest <a href="https://finbold.com/guides/cryptocurrency/" rel="noopener noreferrer nofollow">cryptocurrency</a> by market capitalization, may be teetering on the edge of a significant correction, with analysts expressing concerns about the current price levels. Ethereum has not been immune to the ongoing market volatility that has affected most assets.Particularly, cryptocurrency analyst Ali Martinez, in an <a href="https://finbold.com/guide/how-to-buy-x-stock/" rel="noopener noreferrer nofollow">X </a>(formerly Twitter) <a href="https://twitter.com/ali_charts/status/1699363704460984645" rel="noopener noreferrer nofollow">post</a> dated September 6, highlighted the need for concern, pointing out that Ethereum’s trading price at $1,680 could potentially pave the way for a drop towards $1,200.<blockquote>“Ethereum below $1,680 is a cause for concern, as it may pave the way for a significant $ETH correction down to $1,200,” he said.</blockquote><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/3d02d56a850240b59ce39ef0e212f2bc.jpeg" />Ethereum in and out of money around price chart. Source: IntoTheBlockMartinez shared an analysis from the crypto analysis platform IntoTheBlock, which revealed that the number of addresses purchasing Ethereum within the range of $1,285 to $1,681 was quite limited. This scarcity could potentially lead to a price decline to $1,200, given the reduced activity at these price levels.Martinez’s statement is in line with the prevailing market sentiment, which has witnessed Ethereum struggling to maintain its price above this critical level. Notably, the analyst has previously cautioned that ETH could correct as far as $1,000.As <a href="https://finbold.com/vitalik-buterin-cashes-out-over-1-million-in-eth-before-anticipated-dip-to-1000/" rel="noopener noreferrer nofollow">reported</a> by Finbold, Martinez underscored the paramount significance of Ethereum staying above the crucial <a href="https://finbold.com/guide/support-and-resistance/" rel="noopener noreferrer nofollow">support</a> range of $1,600 to $1,550.The analysts emphasized that a breach of this pivotal support zone could open Ethereum up to substantial downward vulnerabilities, potentially initiating a notable correction ranging between 37% and 45%.<h2 id="header-0">ETH holders in loss</h2>Furthermore, a significant factor contributing to these concerns is the increasing percentage of Ethereum holders who are currently in a loss position. <a href="https://twitter.com/intotheblock/status/1698725564343877842/photo/1" rel="noopener noreferrer nofollow">Data</a> by crypto analysis platform IntoThe Block reveals that the percentage of Ethereum holders holding at a loss has surged from approximately 27% in early July to a striking 44.2% as of September 4. This is the highest level observed since the beginning of the <a href="https://finbold.com/guide/bear-market-definition/" rel="noopener noreferrer nofollow">bear marke</a>t, with the previous peak reaching around 50%.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/8a0efc730fba4055b69926356dedee45.jpeg" />Ethereum historical in and out of the money chart. Source: IntoTheBlockThe substantial increase in the number of Ethereum holders facing losses raises questions about the overall health of the market and whether a turning point is imminent. Historically, when a substantial portion of holders are underwater, it can trigger panic selling and further drive down the price of the cryptocurrency.<h2 id="header-1">Ethereum price analysis</h2>By press time, Ethereum was already correcting, trading at $1,631, recording weekly losses of over 5%.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/beb3e1c3c0f7454693ae3d3856906af3.png" />Ethereum price analysis chart. Source: FinboldIt’s important to highlight that Ethereum is currently confronting various risks, primarily stemming from the overall market volatility.Notably, market participants believe that Ethereum stands to gain from regulatory clarity, especially if the token can capitalize on the potential approval of a <a href="https://finbold.com/etfs/" rel="noopener noreferrer nofollow">spot Bitcoin Exchange Traded Fund</a> (ETF) in the United States.Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.Read more cryptocurrency news on <a href="https://finbold.com/category/cryptocurrency-news/" rel="noopener noreferrer nofollow">Finbold.com</a>.

Ethereum may be set to crash to $1,200; Here’s why

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