Ethereum (ETH/USD) set a yearly low for June 2022 around $900. Technical indicators suggest that the cryptocurrency is headed to test this lower level. At press time, ETH was priced at $1,085 with increasing bear momentum. Should the bearish trend continue, ETH could claim a new low for the year.
Despite the weakness in the price of ETH, sentiment data indicates that whales are still active on the cryptocurrency. On November 21, Ethereum whales obtained 947,940 more ETH tokens, worth approximately $1.03 billion. This amount is the fifth largest amount in a single day this year. The increased whale activity indicates the belief that large investors have the potential for a potential turnaround of the coin. With a price of $1,000, investors see a huge discount.
But ETH could drop further, and taking advantage of lower levels may be more attractive. This view is additionally supported by the market sentiment, which shows that bets on lower prices have intensified recently. Accordingly, around 75% of inflows into Ethereum and Bitcoin are short products. The question is, where is the potential new price heading?
ETH price outlook as momentum weakens at support
On the weekly chart, ETH is trading at or near the support area. While there is a chance for the bulls to stop further losses below this level, the momentum is weak. The MACD indicator is located in the bear zone. The weekly candlestick broke just below an inside-bar pattern, which means the bears are in control.
What next for ETH?
With weak crypto sentiment and momentum, eth price There will probably be a downside move to find support near $800. This level will be the lowest level since January 2021. This means that the crypto winter would have wiped out the boom gains of 2021.
Alternatively, ETH bulls may attempt to defend $900, the cryptocurrency’s June low. This will still be a toll order as the general sentiment remains weak and ETH is under extreme pressure. The $900 level will be an area to watch for the next few days.
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