Ethereum Price Prediction as Bears Push ETH Down to $1,600 – Time to Buy the Dip?
The Ethereum price has risen slightly to $1,629 today, representing a 0.5% increase in the past 24 hours and a 5% loss in the last seven days.
ETH has been one of numerous major tokens to have fallen over the past week as the market continues to struggle with ongoing macroeconomic uncertainty and extended delays in the evaluation of Bitcoin ETFs.
But while ETH has now dropped by 11% in the past month, its recent declines put it in a decidedly oversold and undervalued position, meaning that investors who buy now may be able to book themselves some considerable profits somewhere down the line.
Ethereum Price Prediction as Bears Push ETH Down to $1,600 – Time to Buy the Dip?
Ethereum has been in a weakened position for several weeks now, but this arguably sets it up nicely for a significant rebound in the increasingly imminent future.
Most notably, ETH’s 30-day moving average (yellow) is falling steeply below its 200-day average (blue), reaching a point where it needs to rebound, along with the altcoin’s price.
Likewise, the coin’s relative strength index (purple) remains below 40, so sooner or later it will have to mount a recovery, with buyers likely to swoop in eventually to take advantage of ETH’s significantly discounted price.
But looking at its support level (green), which has been declining in recent weeks, it’s possible that it may fall a little further before seeing a concerted recovery.
This caution is supported by recent transfers, with a Whale Alerts post showing that one big investor has moved around $34.7 million in ETH to Coinbase in the past few hours.
Regardless, ETH is one of the likeliest coins in the market to recover when conditions become more favorable, given just how strong its fundamentals are.
Ethereum continues to be the dominant network within DeFi and other blockchain sectors, with its total value locked in accounting for 56% of the overall ecosystem (or much more if you include Ethereum-based layer-two networks).
It also continues to attract some of the biggest adopters in the business, with PayPal announcing last month that it would be launching its own stablecoin, which would run on Ethereum.
And when combined with its now-deflationary tokenomics (e.g. locked up tokens for staking, fee burns), Ethereum is really a no-brainer for any investor who wants a solid cryptocurrency portfolio based around a few solid coins.
As such, ETH can be expected to return to $1,700 and $1,800 in the next few weeks and months, with ETH potentially reaching $2,000 by the start of next year.
Speedier Gains With Presale Tokens
While ETH remains one of the best bets in the cryptocurrency market, its recovery may be a gradual affair, requiring several months (if not longer) to truly take hold.
For this reason, many traders may opt to diversify into newer altcoins, particularly coins that are holding their presales and getting ready for big rallies once they list on exchanges.
This is likely what’s going to happen with Wall Street Memes (WSM), a new ERC-20 meme token that has raised over $25 million in the past couple of months.
Growing out of the meme stocks movement that infamously instigated the 2021 GameStop and AMC rallies, Wall Street Memes already has a big edge over other new meme tokens, given that it already has a substantial community and following around it.
For instance, its Twitter account now has more than 268,000 followers, something which helps to explain why the coin’s presale has raised so much money so quickly.
Its following will help support and boost its price once it lists on exchanges in the next few weeks, with only 21 days left until the sale ends.
It’s also worth pointing out that WSM is a fairly decentralized meme token, with 50% of its 2 million max supply going to the presale and 30% going to community rewards.
Not only will this distribute guard against big selloffs from single investors, but the existence of community rewards will help motivate greater community engagement with the token, something which should support its price in the longer run.
And while there’s only three weeks left, new buyers can join the sale by visiting the official Wall Street Memes website.
1 WSM is selling at $0.0337, providing investors with a chance to buy one of the biggest new coins of the year at what will probably turn out to be a highly discounted price.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
