Ethereum Plunges: Analysts Predict New 2023 Lows

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been experiencing a significant downturn over the past few days, with analysts predicting that its price could reach its lowest point since October 2023. The token has been on a downward trajectory for three consecutive days, with no signs of slowing down or reversing its course. At the time of writing, ETH is hovering around $2,430, having fallen by at least 40% from its all-time high of November 2024.

TokenTerminal data reveals that ETH's fees have been declining for several months, with the token generating around $9.8 million in fees last week, a significant drop from its 2024 weekly high of over $217 million. Additionally, networks such as Tron, Uniswap, Solana, and Jito have surpassed ETH in fee generation. The token's position in the decentralized finance (DeFi) sector has also weakened, with its total value dropping by 12.5% in the past 30 days to $54.32 billion. Despite this, ETH remains one of the largest players in the stablecoin sector based on market capitalization.

Analysts have pointed to a death-cross pattern in ETH's price chart, indicating a potential significant drop in the token's value. The 200-day and 50-day moving averages have intersected, and ETH has fallen below the 61.8% retracement level. As a result, some analysts predict that ETH could fall by 35% to around the $1,530 range, marking its lowest price since October 2023. Investors are advised to consider selling their ETH holdings or brace for impact, as the token is expected to hit its lowest point in the coming weeks.