In the past 24 hours, the price of Ethereum (ETH) has gone up a little, but the asset is still facing significant challenges. ETH is having trouble with low liquidity on its network after showing a “death cross” in early August, which is a sign of a bear market.
Experts say that prices could drop by 50%, reaching as low as $1,340. A well-known crypto analyst named Benjamin Cowen thinks that Ethereum could drop even more and hit $1,200 by the end of the year. This drop occurs at a time when the cryptocurrency market is getting better, following Bitcoin’s recent turnaround.
The highly expected Trump-Harris presidential debate today is a key event that could have a big impact on Ethereum’s price. Former President Donald Trump and Vice President Kamala Harris will go head-to-head in a debate. The outcome of the debate could be very important for ETH’s future.
Ethereum Regulatory Challenges
Recent polls from the Silver Bulletin show that 61.5% of the electoral college will vote for Trump, while 38% will vote for Harris. Harris, on the other hand, has a 11.4% lead in the overall vote. If Harris does well in the debate, the Biden-Harris government has a history of putting pressure on cryptocurrencies through regulations, which could make the price of ETH drop even more.
Over the past few months, the U.S. Securities and Exchange Commission (SEC) and the new government have paid more attention to the cryptocurrency market. Trump, on the other hand, has established himself as someone who supports crypto. He spoke out strongly in favor of Bitcoin at the 2024 Bitcoin Conference in Nashville, which was a sign that his win would probably be beneficial for crypto markets.
If Trump wins the discussion, the price of ETH could go up because more people will trust him as a candidate. But, even though Trump might have an effect, the price of ETH is still going down. Santiment’s recent on-chain metrics show that there were a lot more whale trades on September 9 and 10. This could indicate that prices will change in the future.
This is consistent with Coinglass Exchange Netflows data from September 9, which showed positive net flows of $20.15 million, implying that Ethereum users are selling off their holdings. Market liquidity has also dropped by 20% since the Ether ETF was launched. According to CCData expert Jacob Joseph, it has dropped by 45% since its peak in June.
The market is very delicate right now because of limited liquidity and ETH’s 25% drop in value since the ETF launched. Because liquidity is declining, big trades now have a greater impact on how prices change. Technical indicators indicate that ETH is more vulnerable to a decline.
The price chart just came out of bear pennant, which is another sign that the price is going down. Some analysts think it will fall to $1,340. The crypto market might not have hit bottom yet if people’s feelings stay bad.
There is still hope for a bullish turnaround, even with these problems. If positive news comes out of the Trump-Harris debate, the price of Ethereum could go up. Analysts think that ETH could rise above important resistance levels and hit $3,600 or even $4,000 if it breaks through the 50-day and 200-day moving averages.
