Ethereum is currently bearish over the long and medium terms. At the time of writing, bullish price action across the crypto market is not especially strong, as several cryptos struggle to manage the ripple effects of the FTX crash.
Ethereum, for example, sits at $1,240 after its rejection from the $1,300 zone over the last week.
The cryptocurrency took an especially severe hit when the FTX crash happened. Before the event, Ethereum was trading around $1,684 after rising from a $1,118 low in the late-October crypto boom.
However, the incident with FTX sent the cryptocurrency crashing down by a whopping 57% within one week, to a low of $1,077.
However, it seems that Ethereum's woes are far from over.
According to recent predictions by the crypto exchange platform, CoinCodex, the second largest cryptocurrency by market cap, is set to crash even lower than its previous lows to $922.
According to the calendar, this crash to $922 is expected to happen on Saturday this week.
According to the charts, ETH is currently in a bearish channel and has declined by about 36% from 4 November until date.
And for this reason, it becomes difficult to dismiss this doomsday prediction for Bitcoin's sister cryptocurrency.
According to CoinCodex's prediction, the decline in Ethereum from where it currently sits would be about 34%, marking an 81% dip from its former highs before the FTX crash.
CoinCodex stated a few reasons for their negative prediction on Ethereum, mentioning that the medium-term direction for the cryptocurrency is bearish after dropping by -22.81 over the last three months and -69.28 over the last year.
On the charts, Ethereum has declined by more than 60% over the last year and was trading at almost $5,000.
It is generally accepted that the direction of Ethereum over the long term is bearish, just like the rest of the crypto market. This leaves the question of how far the cryptocurrency can go below where it is now.
In the medium term, however, a descending channel can be drawn to illustrate the CoinCodex prediction on Ethereum.
The cryptocurrency is currently struggling around the $1,240 zone after being rejected from $1,306 over the last week.
The cryptocurrency's price action within the channel indicates how crucial it is for Ethereum to rise above the $1,300 zone before the bears take control.
For one, a price decline to the bottom of the channel (around the $1,000 zone) is possible if the bulls fail to push the cryptocurrency up above the $1,300 resistance.
As for the timing of the CoinCodex prediction, it remains to be seen how far the cryptocurrency's bulls can hold out against its bears.
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