Ethereum (ETH) and other altcoins have been gaining value since October, with the price of ETH surpassing $2,300 during this period. However, on the night of December 10-11, there was a general decline in the crypto market, and along with over $300 million in liquidations, altcoins experienced a sharp fall. The price of ETH was also affected by this decline, dropping from around $2,350 to $2,150.
While Ethereum’s trading volume increased, unlike Bitcoin, its price could not return to a stable level. Crypto analyst and trader AlanSantana noted that ETH’s decline has just started and that a downward wave has already been experienced.
AlanSantana indicated that there is a strong downtrend for Ethereum, with the selling volume significantly surpassing the buying volume, and prices closed below the 10-day Exponential Moving Average (EMA 10). He also mentioned that on the daily timeframe, the Relative Strength Index (RSI) appeared to be “jumping off a cliff” with downward momentum.
According to the price chart shared by the analyst, ETH is initially expected to fall to $1,764. If it cannot hold above this level, the next stops could be $1,639 and even $1,462, respectively.
Despite the risk of a sharp decline for ETH, AlanSantana expressed that after the current price correction ends, the altcoin could perform much stronger than it did in 2021. It is known that Ethereum surpassed $4,000 for the first time in 2021 and closed the year solidly above $3,760.
The current situation of the ETH price marks the end of the rise in the altcoin market since the end of October, driven by investor enthusiasm and a flow of positive news, with a sharp drop on December 11. The price performance of ETH in the last 24 hours, trading below $2,200 under selling pressure, confirms AlanSantana’s predictions.