Ethereum slipped to $1,754 in the early hours of the March 11 trading session to retest a support region from the middle of 2023.
The altcoin’s recent behavior has raised concerns among crypto community members, and a VP at Yuga Labs is forecasting even more trouble for Ethereum if the current downtrend sticks.
Analyst: Ethereum Could Tank Below $500
In his latest post on X, this well-known crypto voice put out a stark prediction: Ethereum could plummet to between $200 and $400 if the bear market drags on. He noted some crypto watchers are calling $1,500 as the bottom for the current slide. That might be true, he says, if the crypto market were nearing the end of a bear cycle.
Expanding on his Ethereum worries, the Yuga Labs VP suggested the crypto market might be heading into a new bear market. This possibility is the basis for his grim Ethereum price forecast. He pointed out that the major altcoin dropped 30% last week and is down a total of 50% over the last three months.
Related: Crypto Price Check: ETH, SOL, ADA, AVAX Tank in Market Plunge
Past bear markets show a similar pattern, he added, implying Ethereum could drop another 20% from here. Bottom line, he thinks Ethereum investors could be in for more pain if a new bear market is indeed upon us. However, he did express some longer-term optimism.
User Interest in Ethereum Seems to Be Fading
Adding to the negative picture, Ethereum’s performance during the last bull run was pretty weak, suggesting users are losing faith in the digital currency. Several factors are at play: Network activity is down, competition is up from other blockchains, and those much-hyped spot ETFs haven’t caught on for Ethereum like some expected.
Related: Ethereum (ETH) Exchange Exodus: 600,000 ETH Withdrawn — Supply Squeeze Signals Potential Price Surge
Ethereum’s lead in DeFi is also at risk, partly due to its complex layer-2 setup. Growing competition from platforms like Hyperliquid and Berachain is also hurting Ethereum’s growth and contributing to the project’s current struggles.
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