🌎 Ethereum Price May Crash 20

Ethereum’s bear market persists, with three concerning chart patterns indicating a potential 20% crash in the near future.

Ethereum’s Struggle Amidst Competition

Ethereum, the second-largest cryptocurrency, has retreated to $2,670, down over 35% from its highest level in December. This decline comes as the crypto faces substantial competition in the blockchain industry. Popular layer-1 networks such as Solana, BNB Smart Chain, and Berachain are gaining traction, while layer-2 blockchains like Base and Arbitrum are attracting users with their lower costs.

For instance, DEX protocols on Ethereum handled a volume of $81 billion in the last 30 days, whereas Base and Arbitrum processed $35 billion and $28 billion, respectively.

Ethereum ETFs Face Outflows

Third-party data reveals that Ethereum ETFs are experiencing outflows, with the cumulative total reaching $3.15 billion. In contrast, Bitcoin ETFs have accumulated nearly $40 billion in inflows. This disparity in investor interest may further impact Ethereum’s price.

Declining Trading Volume and Revenue

Ethereum’s daily trading volume has continued to fall, reaching $126 billion, down from the December high of $330 billion. Additionally, its revenue has decreased to $5 million on Sunday, lower than the $58 million recorded in November last year.

Futures Open Interest Crashes

Ethereum’s futures open interest has plummeted from its 2024 highs, currently standing at $23.3 billion, down from this month’s high of $35 billion.

Price Patterns Suggest Further Downside

The daily chart indicates that Ethereum’s value may be at risk of more downside. A death cross formed on February 9 as the 50-day and 200-day Weighted Moving Averages crossed each other. Additionally, the coin has formed a rising wedge pattern and a bearish pennant pattern, which often lead to further declines.

In such cases, the next level to watch is at $2,166, its lowest level this month. A break below that level could indicate more downside, potentially to $2,000.