Although the current market conditions for Ethereum mirror historical extreme lows, ETH remains the “most likely” candidate for institutional adoption, according to Qiao Wang from Alliance DAO.
Ethereum’s (ETH) price is edging closer to oversold territory, raising concerns about its potential to return to its previous all-time high before the current bullish cycle concludes. Data indicates that as of March 13, ETH has transitioned into the weak zone and is heading toward the oversold area, which already contains altcoins like TRON (TRX), Maker (MKR), and Lido (LDO), among others.
Qiao Wang, co-founder of the web3 accelerator, pointed out that ETH is at a similar oversold level as it was during significant past events like the 2021 Terra collapse, the severe bear market in 2018, and the fallout from the 2016 DAO hack, adding that it’s “truly hard not to want to buy at this point,” even as the extent of any further decline in ETH remains uncertain.
Recent reports indicate that Ethereum has faced three consecutive weeks of price declines, as investors hold back. Moreover, data from Santiment reveals a continuous decline in daily active Ethereum addresses; on March 12, the network recorded 293,000 addresses, a significant drop from over 717,000 earlier this year.
At this juncture, the most apparent path for ETH appears bearish, with a crucial level to observe set at $1,500. Should it break below this threshold, it could slide down to the next psychological support level at $1,000, which would represent a 45% drop from its current valuation. A rise above the pivotal support-resistance level of $2,500 would counter the bearish perspective. Despite the prevailing negative sentiment, the co-founder maintains that ETH remains the “most likely candidate for institutional adoption.”