Ethereum below $1,300? Here's why it's possible

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90 days on from trading at $508 on the price charts, Ethereum, the world’s largest altcoin, was valued at $1,482, at the time of writing. Over the past few months, ETH’s price has risen multifold due to a hike in investment flows and the altcoin rally that began in January 2021. In fact, the launch of Ethereum Futures on the CME has also contributed to the same, with the recent increase in trading activity emerging as evidence for that.

Post a 5.65% drop in price over the last 24 hours, however, Ethereum ^[1] soon fell below the $1,500-level. The momentum from the launch of CME ETH Futures and the altcoin rally has dropped, with the same evidenced by the over 20% drop in price over the week. Further, trade volumes in Ethereum have dropped by 36.3% while at the same time, Ethereum ^[2] exchange reserves have risen too.

Source: CoinGecko ^[3]

These findings underlined a bearish sentiment in the market. Based on on-chain analysis as well, the sentiment seemed to be mostly bearish. Ethereum had hit its latest ATH of $2,036 five days ago when Bitcoin’s price hit its own ATH. Post the drop in Bitcoin’s price, however, Ethereum’s price dropped as well. This can be attributed to the high correlation between the two crypto-assets. At the time of writing, the ETH-BTC correlation was 0.89.

In the case of Bitcoin, institutional investment flows have

Ethereum below $1,300? Here's why it's possible

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