Ethereum (ETH) Suffers a Major Blow: Is a Crash to $1,000 Coming Next?

USDT temporarily flipped ETH to become the second-biggest cryptocurrency.

Almost every major altcoin has taken a beating in recent months, and Ethereum is no exception, with its price plunging to a 14-month bottom.

Analysts now warn that it could be on the verge of a further slump, with some floating the idea of a crash to a multi-year low of around $1,000.

The Red Days Aren’t Over?

The prolonged bear market hasn’t been the only thing suppressing ETH’s valuation lately. As CryptoPotato reported, Hsiao-Wei Wang stepped down as the Ethereum Foundation’s co-executive director and board member, while shortly after, the entity reduced its workforce by 20%.

Following the combination of the numerous negative developments, ETH’s price nosedived to just north of $1,500, while its market capitalization briefly tumbled below $183 billion. This means that for a moment, Tether’s USDT flipped Ethereum to become the second-largest cryptocurrency. ETH has reclaimed its prestigious spot, albeit leading by a slim margin.

According to Ali Martinez, the asset has been trading inside a crucial volume block between $1,584 and $1,683, where nearly 4 million coins have changed hands. He claimed that securing this “specific area” as support can open the door to the next major supply clusters at $1,980 and $2,079.

At the same time, the analyst warned that losing this baseline (as it happened just hours ago) might result in a deeper plunge to $1,237 and even $1,089.

X user Ryker also shared their outlook, predicting a drop to $1,260 before a potential rally above $3K. Merlijn The Trader highlighted the forecast, noting that Ryker is the only trader followed by Changpeng Zhao (CZ) on X.

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Previous Predictions

Earlier this month, X user Ted opined that ETH is more likely to reach its cycle bottom before Bitcoin (BTC). Back then, he claimed that most of the downside liquidity has been taken out, projecting a downfall to $1,300-$1,400. For their part, Niels envisioned a drop to $1,200 sometime this year.

Recent whale activity reinforces the bearish outlook. X user Max Crypto revealed that one large investor opened a $68 million short position on ETH with 23x leverage, while Justin Wu outlined that four OG wallets have started dumping their holdings.

Whales are known as experienced market participants who may have inside information about upcoming events that could influence the price. That’s why their efforts are closely monitored by retail investors who could panic and cash out as well.