Investors are debating whether it's the right time to buy the dip in Ethereum amidst turbulent times, or should they hold off for a potential drop to $1,500. Uncover the key factors shaping ETH's trajectory.
Ethereum investors are dismayed as the price of ETH continues to lose ground against its main competitors like Bitcoin. Despite an unexpected easing of consumer inflation in the United States, giving the Fed room to lower rates later in the year 2025, the price of Ethereum has failed to significantly recover and remains well below $2,000.
Source : TradingView
Indeed, ETH/BTC has dropped to its lowest level in nearly 5 years, below 0.023. This accelerated bearish spiral of Ethereum against Bitcoin is a major source of concern for its investors. At this pace, a retest of its 2019 lows around 0.016 could quickly occur.
Source : TradingView
The price of Ethereum has experienced a breakdown and a rejection from the key long-term resistance level of $2,140 in recent days. This sends a strong bearish signal indicating that the range from $2,000 to $4,000 from 2024 to early 2025 is over. Additionally, Ethereum is likely to find a new range at lower levels.
Source : TradingView
Bears will aim for a retest of the next major support zone around $1,500. This retest seems very likely in the context of an uncertain macroeconomic environment.
While the slowdown of inflation in the United States gives the Fed room to take a slightly more accommodative stance in 2025, the main concern in the markets remains the risk of recession in the United States. D.O.G.E’s austerity and Trump’s trade war are increasingly weighing on economic growth.
According to Mohamed El-Erian, a columnist for Bloomberg Opinion, the probability of a recession in the United States is now 25% to 30%.
If signs of recession multiply and the market doubts the support from the Fed, risk appetite could further decline. Bitcoin may withstand thanks to its safe-haven asset status, reinforced by the strategic reserve announced by Trump. In contrast, Ethereum may struggle to attract buyers.
The price of Ethereum is poised to collapse to lower levels. Could this be the right time for investors to buy the dip?
Yes, buying any ETH dip would likely be a good decision. Be prepared to endure significant short-term turbulence. Macroeconomic uncertainties will not last forever. And eventually, US financial conditions should substantially ease. This will mean an influx of liquidity into the market.
Historically, periods of strong Ethereum price performance have coincided with phases of increased/softer liquidity by the Fed. Therefore, a solid rebound can be expected when the Fed boosts the market. Furthermore, in the longer term, the tailwinds of the pro-crypto policy of the Trump administration should also help Ethereum.
The Trump administration is filled with ETH HODLers. Regulatory clarity will give the Ethereum ecosystem ample room to grow in the years to come.
Traders should also remember that Ethereum remains the dominant DeFi chain. It is also the most reliable smart contract blockchain in the crypto-verse. That’s why BlackRock supports ETH.
Dark as the current situation may seem, and despite all the FUD in the market, the long-term outlook for Ethereum remains strong. Its biggest challenge for the future will likely be to continue losing market share to more agile rivals attracting new users at a faster rate than Ethereum. But ETH remains by far the best candidate for large institutions looking to get involved in DeFi. This is due to its status as the most reliable and decentralized smart contract blockchain.
Accumulating ETH around $1,500 with the aim of holding it for at least a few years could be an excellent strategy. Investors should not rule out the possibility of ETH reaching $10,000 by the end of Trump’s second term.
The future of Ethereum depends on several factors…ETH’s price has recently experienced declines, and many investors are wondering if this is the right time to buy.
If you’re considering buying ETH, here’s how you can do so easily :
Before investing, it is always recommended to stay informed and adapt your strategy according to the market context.
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
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