"Ethereum's Bearish Plunge: Is $1,125 Next?"

Ethereum, the second-largest cryptocurrency, has been in a bear market this year, with its price failing to find a clear catalyst for growth. As of March, the ETH coin was trading at an extreme oversold level of the Murrey Mathe Lines, around $2,220, marking a nearly 50% decline from its peak in December 2021. This raises the question: is it safe to buy the ETH dip?

The daily chart of ETH coin price shows a significant crash over the past two months. After reaching a high of $4,088 in November 2021, the coin has since plummeted to $2,220, slightly below the key support level of $2,182. The price has also fallen below the 50-day moving average and the Ichimoku cloud indicator, suggesting that bears remain in control. Additionally, the coin appears to have formed an inverse head and shoulders pattern, a popular bearish continuation signal.

Oscillators have continued to move downwards, with the Relative Strength Index (RSI) dropping to oversold levels and the percentage price oscillator (PPO) moving below the zero line. Based on this analysis, the outlook for Ethereum is bearish. Measuring the distance between the November 2021 peak and the current price indicates a potential 50% decline, with the next Ethereum price target at $1,125.

However, this bearish target will be invalidated if the coin manages to rise above the strong, pivot, reverse level at $2,812. A move above this level could signal further gains, with the next resistance point to watch being around $3,500.

The decline in ETH price can be attributed to several factors. Firstly, there is weak demand from both retail and institutional investors, as evidenced by the spot Ethereum ETF inflows and outflows data. The ETF has seen outflows for seven consecutive days, with total inflows since inception at $2.28 billion and total Ethereum ETF assets at around $8 billion. Similarly, the staking market has witnessed a decline in Ethereum ETF outflows over the past few months, with the staking market cap falling by nearly 20% in the last seven days.

Furthermore,