Ethereum Price Could Drop to $1,000, Analyst Warns
An analyst from Matrixport predicts that Ethereum (ETH) could experience a significant drop to $1,000 if it falls below $1,500. This potential decline is attributed to a sell-off initiated by FTX creditors. If these creditors receive approval from a US court, it could lead to an “overhang for altcoins for the rest of the year.” The analyst believes that a decline to $1,000 is justifiable based on revenue projections from the Ethereum ecosystem. Currently, ETH is trading at $1,611, below the 50-day moving average and underperforming Bitcoin.
Other Crypto Vulnerable to FTX Sales
Solana’s native cryptocurrency SOL is also at risk due to FTX sales. It currently faces a negative funding rate and may decline further in value. The analyst sets target levels for SOL at $15 and $10, with the coin currently trading at $18.4. Additionally, if FTX receives approval for liquidation and the August Consumer Price Index rises, it could potentially impact the price of Bitcoin. However, investor sentiment for Bitcoin remains positive.
FTX Holds $3.6 Billion Worth of Crypto
FTX bankruptcy estate manages a crypto portfolio of $3.6 billion, including $1.16 billion in SOL and $560 million in BTC.
Hot Take: Ethereum and Solana Face Potential Declines Amid FTX Crisis
The ongoing FTX crisis poses significant risks for Ethereum and Solana. Ethereum’s price could drop to $1,000 if it falls below $1,500, while Solana’s SOL faces the possibility of further decline. Additionally, Bitcoin may also be affected if FTX receives approval for liquidation and the Consumer Price Index continues to rise. However, despite these potential challenges, investor sentiment for Bitcoin remains positive. It will be crucial to monitor the developments surrounding FTX and their impact on the broader cryptocurrency market.
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