Terra Classic, Celsius, Alameda, FTX… The blacklist is long in the year 2022. Ethereum is not immune to the terrible bear market that is hitting the entire crypto market. A separately monitored indicator, ‘Ethereum rainbow’ does not go well to continue the 2nd largest blockchain network in the world.
Some experts even claim that the latter could drop significantly in value. To an extent the passage is considered below the 1000 dollar mark. So, is it just plain scary speculation, or is the story possible? This is what we will try to figure out in this article.
Ethereum rainbow indicator reaches “fire sell” zone.
The DeFi asset Ethereum (ETH), confirms its decline by seeing a widely used indicator of the latter. The Ethereum rainbow is available on the Bitcoincenter site and gives us a good insight into the future state of the ETH market.
The indicator emerges in the form of a rainbow after a logarithmic regression. It gives an estimate of the price based on past performance to give us a possible visualization of the future evolution of the crypto’s value.
And on November 22, 2022, ETH reached the blue zone of the indicator which indicates a maximum oversold point. It has been more than 2 years since this level was achieved. This shows a complete loss of investor confidence in ETH, which had given The Merge a lot of hope anyway.
Ethereum’s descent into this famous blue zone is not the first time, however. He had already achieved this during this summer. And that didn’t stop ETH from going up after that. Big names like the “Crypto Futur” account also mentioned it via a tweet on June 15.
We reached the blue zone “Basically Fire Sale” on Bitcoin Rainbow Chart as in 2012/2015/2018/corona pic.twitter.com/3xv1gUnmaO
— Crypto Future (@crypto_futur) June 15, 2022
Understanding Ethereum rainbow in detail
The indicator was originally created by the Blockchain center site and visualizes the future value of Ethereum. It follows a logarithmic curve a based on the social average. By following the curve, we can then know whether to buy or sell instead.
However, the rainbow indicator should be taken with a grain of salt. It should be related to other indicators to have a complete picture of the market situation. It is indicative in nature and should in no way be taken as a sole reference.
It is still relevant to interpret the general trend around the asset. If Ethereum is currently in an oversold state, the indicator still predicts a nice rise by the end of the year. Analysis shared by other seasoned experts.
Is Ethereum in bad shape because of that?
If the token has just shown signs of concern, the Ethereum model has yet to be qualified. While the ETH token is in an oversold condition, this, however, did not derail his bullish movement.
If we always refer to the same indicator, it is more they will probably be trading above $2000 by the end of the year. Let’s not forget that the FTX affair had a major impact on market stability. Ethereum is still a very successful asset that is not yet a game player.
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A short analysis of Ethereum price
Ethereum is currently trading at the amount of 1094 euros in the market according to CoinMarketCap. A few days ago, it ran a course by breaking the support level at 1100 dollars. At this point, the crypto is likely to break below $1000 before seeing a further rise.
whatever, it seems like a bad sign to invest in the token at the moment. All indicators are red, everywhere you look ETH is in an oversold state and will likely continue to fall. In order to see the light at the end of the tunnel, we will have to wait a few more days.
Over the past few days, Ethereum has been losing a large portion of its value on a daily basis. The token loses 3% of its value every day and the trend continues. The purchase data is very poor and this has a strong impact on the price.
What can we expect from Ethereum for the future?
Despite all the hype, the predictions for Ethereum are still good. Looking at the CoinMarketCap site with its community prediction section, the outlook is pretty positive.
On average, users expect a $1,508 token by December 31 2022. But the shadow of FTX still hangs, and the predictions are somewhat paradoxical at the latter.
We’ll have to wait a little longer before we know a little more about the future value of the new Pledge Proof network. If you want to follow the news around FTX, This is where it happens.