Ethereum Eyes Sub $3,000 Dip as Momentum Weakens

As Bitcoin failed to make a decisive price move, the wider crypto market is also being affected. Ethereum, the second-largest asset by market cap is showing signs of weakness and could soon drop below a critical price level.

A crypto expert Ted shared his expectations for the coin on X, saying although the coin is still holding above the critical $3,000 level, its momentum is getting weak, which can cause the price to dip below the level before another leg up can begin.

Ethereum Yet to Find a Bottom

Ethereum, like Bitcoin, has been in a downward trend for several weeks now. It has also failed to find a bottom despite severally failing to break to a higher price level. For almost a month now, the coin has been trading between $3,200 and $2,800 which has served as a major support, although it has also lost this support briefly during this time.

Ethereum has been mostly bearish the whole year, closing several months in the red. According to data, November was the 8th month Ethereum closed in the red this year, making it one of the most bearish coins so far.

Currently trading at $3,031, Ted says the coin is losing momentum, resulting in a potential drop below $3,000 should the weakening continue. This means buyers are pulling out and the price is stagnating instead of rising. If the momentum doesn’t return, a price drop becomes imminent. 

When that happens, the coin drops to a lower price and finds support before building the momentum for another upward movement. Ted expects Ethereum to experience this after tomorrow’s market opens before another reversal happens. 

Will Ethereum Fusaka Upgrade Help?

While Ethereum has been bearish for the most part of the year, the team is working on some improvements which may be of help. The network recently underwent an upgrade known as the Fusaka upgrade. 

Fusaka, among other things, increases the Ethereum block gas limit, which increases the throughput and allows more transactions and smart contract operations within a block. This will potentially reduce network congestion and increase scalability which has been a major setback for the network, but it has no effect on the price yet.

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