Ethereum drops to three-month low, IDX CEO says “we are close to the bottom”

Bitcoin has fallen nearly 39% from its high of $68,000, and Ethereum has also fallen from its all-time high of $4,900 to its lowest point in three months, around $3,200, with an overall decline of about 35%. Ethereum has tried to break through the $3,800 resistance level several times in the past week, but eventually fell like a waterfall. According to Bitpush terminal data, as of press time, the price of Ethereum was $3,175.69, down 6.14% on the day.

According to Ethereum’s trend in September 2021, it bounced between the $3,157 and $2,800 levels for more than a week before climbing upwards again, a trend that is likely to repeat this month.

“We can see that Ethereum has pretty strong support in the $3,300-$3,400 range and we may be close to the bottom,” Ben McMillan, CIO of IDX Digital Assets, told CoinDesk.

McMillan also touched on a potential bullish factor in the interview, as he believes the cryptocurrency market will recover from the recent sell-off sparked by the Fed release. "Given the risk-on sell-off seen across all markets, it is normal for assets to fall. And given the bullish sentiment surrounding Ethereum ahead of the ETH 2.0 upgrade this year, we expect to see the majority of the selling pressure begin to subside at these levels ($3,300-3,400)."

Armando Aguilar, vice president of digital asset strategy at Fundstrat Global Advisors, expressed a similar view, noting that "ETH has fallen to $3,300, which may be the lowest price. $3,300-3,400 belongs to the MA200 (moving average 200) range, which provides strong support for the asset. On the downside, the key support level is $3,300, followed by the $3,075 area."

He also noted that "market sentiment appears weak following the Fed's meeting and the cryptocurrency market may see some additional volatility in the short term."

Konstantin Boyko-Romanovsky, founder and CEO of Allnodes Inc., commented on Ethereum’s prospects, stressing that 2022 will be a critical year for both the digital asset and its blockchain. “Assuming that everything goes well and Ethereum successfully completes its expansion and transitions to the energy-efficient Proof-of-Stake model, we can predict that Ethereum will not only rebound, but also rise for quite a long time.”