ETH price could drop to $200 in bear market

Ethereum could see a decrease in drastic prices up to $ 200 to $ 400 if the cryptography market has entered a new cycle of bear, according to Quit, vice-president of blockchain at Yuga Labs.

In a post of March 11 on X, leave questioned Optimistic price objectives for Ethereum (Ethn). While many see $ 1,500 as a probable floor for the ETH, he warned that if the slowdown has only just begun, historical trends suggest that a draw of 80 to 90% could push prices as low as $ 400.

He also pointed out that the weekly decline of 30% of Ethereum and a 50% drop in the last three months do not necessarily mean that the worst is over, because the real bears markets can erase much more value.

Despite these prospects, leaves personally optimistic but advises investors in reconsider Their allowances if they are not prepared to decrease.

Meanwhile, Ethereum whales are already positioning For more drop in potential prices. On March 11, Lookonchain pointed out an important transaction in which a portfolio linked to the Ethereum Foundation recently deposited 30,098 ETH (~ 56.08 million dollars) in Makerdao (Mkr) to lower its liquidation price. This portfolio now holds 100,394 ETH ($ 182 million) on Maker, with a liquidation threshold of $ 1,127.

In a separate transaction, an ICO Ethereum whale also moved 7,000 ETH (~ 12.94 million dollars) to Kraken, signaling possible sales pressure.

Ethereum is struggling for several reasons, such as the fall of the network activityDecrease in institutional demand and growing competition from cheaper and faster blockchains. According to Sosovalue, according to Sosovalue data.

Some analysts have noted that ETH ETH ETH seem less attractive than yields to 4.5% stablecoin of 4.5% decentralization due to their absence of staking Incitations.

At the same time, the domination of Ethereum in the Terns DEFI and Perpetual Term is threatened due to its fragmented layer 2 ecosystem and the growing competition of platforms as a hyperliquid (THRESHING) and berain (He), which have collected billions of total locked values.

Due to the drop in network activity and the drop in gas prices, ETH has also managed to keep its deflationary status, its supply now increasing at an annual rate of 0.7%. Although it aimed to reduce inflation, the EIP-1559 burning mechanism has struggled to compensate for a new issue.

It is not clear if the ETH will soon be able to recover its previous support of $ 2,600 in the absence of incentives when putting the ETF and an increase in challenge for challenge. At the time of the press, Ethereum is negotiated at around $ 1850, with $ 246 million in liquidations in the last 24 hours, depending on Coiinglass data.