The past week can be summed up in two words only, fear and faith. Some of the traders gave up on their fear while some traders held fast to faith by imagining that all is well. Ethereum traders have remained steadfast in their friendship with Ethereum (ETH) most of the time by showing resolute faith in their beloved crypto. After a bearish week, today the Ethereum price played hide and seek with the 2k mark. In the morning, it crossed the 2k mark to touch 2,060$ but at the press time, it is at 1,909.81$.
It is significant to figure out whether the aftershocks of LUNA are still to be felt by Ethereum and the whole crypto market or we can move forward now. The Ethereum market was ready for a recovery if the LUNA demise had not been encountered. As for now, the small investors have suffered the most and most of them have vowed not to return to the market again. The people who panicked and sold out cannot be blamed now because their fears were justifiable when both the DeFi and NFT markets fell beyond expectations.
Critical data from analytical websites shows that for the first time in history Ethereum traders have sold their stocks for a loss with an all-time high ratio. It shows the gruffness of the situation and bearish movement which is far from ending.
Comparison With Past Bearish Trend
Last year, the price of 1,800 dollars served as the base price for Ethereum when it started to recover and reached a record price of 4.8k dollars within 4 months period. The question here is can Ethereum do the wonder this time as well?
The number (18-1900$) might be matching with the previous year’s same month but the present bearish movement doesn’t seem to be over yet as Bitcoin has lost another 3 percent of its value today and we know that Ethereum is not going Bearish without Bitcoin. In my capacity, I think that, unlike last year, this year it is going to set an all-time low. The present level might be a strong resistance level but the price is going to touch 1,500 dollars in the next two weeks and then it would start rising gradually.
Many other factors also support my words such as the MVRV (Market value to real value) which has reached near the undervalued zone. Currently, the MVRV ratio stands at 1.15 which means that Ethereum is on the verge of being undervalued.
Conclusion
In any case, the movement is still downward and the tiny upward waves don’t make any difference at the end of the day. Today’s short bounce is not going to change the rhythm.
A deflection is not sufficient for the bearish movement to stop. and keeping an eye on the situation, the market is not turning bullish in the near future. Short-term investors may be able to find small opportunities but for the long-term investors, it is still a time to sit back tight.
