Ethereum Faces Potential Price Crash Amid Bear Market Fears
Quit, the vice president of blockchain at Yuga Labs, warns that Ethereum (ETH) could plummet to $200–$400 if the crypto market is entering a new bear cycle. In a recent X post, Quit challenged the optimistic price targets for ETH, suggesting that a past 80–90% drawdown could be on the horizon.
Ethereum has already seen a 30% weekly drop and a 50% decline over three months. Quit advises investors to reconsider their allocations if they’re not prepared for further losses. Simultaneously occurring, ethereum whales are positioning for potential price declines. A wallet linked to the Ethereum Foundation deposited 30,098 ETH into MakerDAO, lowering its liquidation price. Another whale moved 7,000 ETH to Kraken, signaling possible selling pressure.
ethereum faces challenges like falling network activity, reduced institutional demand, and competition from cheaper, faster blockchains. spot Ethereum exchange-traded funds have seen $119 million in net outflows. Some analysts believe Spot ETH ETFs are less attractive than decentralized finance’s 4.5% stablecoin yields due to the lack of staking incentives. Ethereum’s dominance in DeFi is under threat from platforms like Hyperliquid and Berachain. ETH’s supply is now growing at 0.7% annually, failing to retain its deflationary status. Without ETF staking incentives and increased DeFi demand, ETH may struggle to recover its previous $2,600 support. As of now, Ethereum trades at about $1,850, with $246 million in liquidations over the past 24 hours.
- Ethereum could drop to $200–$400 in a new bear cycle.
- Ethereum whales are preparing for further price declines.
- Ethereum faces challenges like falling network activity and competition.
