Crypto market enjoyed a sustainable rise since October, with many altcoins reaching prices not seen since early 2022. Ethereum (ETH), the second-largest cryptocurrency and the largest altcoin, saw its price exceed $2,300 during this period. However, on the night of December 10-11, a market-wide decline triggered liquidations exceeding $300 million, causing altcoins to plummet sharply. As expected, ETH also took a hit from this decline, with its price falling from approximately $2,350 to $2,150.
Ethereum’s Selling Volume Increases
Unlike Bitcoin, which somehow regained stability, the decline in Ethereum continues. Crypto analyst and trader AlanSantana warned that the downswing in the altcoin king might just be beginning. In his warning, he said, “The downswing for ETH is just starting, and in fact, part of the downward wave has already occurred.”
AlanSantana commented on Ethereum’s current outlook, stating that the altcoin is experiencing its strongest drop in months. The analyst pointed out that ETH’s selling volume has significantly surpassed its buying volume and that it continues to close candles below the 10-day Exponential Moving Average (EMA 10). He also warned investors by looking at the current state of the Relative Strength Index (RSI) in the daily time frame, mentioning that the RSI is giving the impression of having jumped off the edge of a cliff with the increase in downward momentum.
According to the analyst’s shared price chart, ETH is expected to first retract to $1,764. If the price cannot hold above this level, the next stops could be $1,639 and even $1,462.
Although AlanSantana mentioned the imminent risk of a sharp decline for ETH, he also expressed that after the current price correction ends, the altcoin could have a much stronger year than 2021. It is well known that Ethereum surpassed $4,000 for the first time in 2021 and closed the year strongly above $3,760.
The analyst emphasized that despite the prevailing downtrend, there are very few reasons to panic, highlighting that the market always presents opportunities to investors and that there is always enough time to take action.
Current Status of ETH Price
Ethereum triggered a rise in the altcoin market with increasing investor enthusiasm and a series of positive news flows, making its biggest leap of the year since the end of October. This upward trend ended with a sharp decline in the early hours of December 11. The price performance of the altcoin king in the last 24 hours confirms AlanSantana’s prediction, as ETH continues to be under selling pressure, trading below the $2,200 threshold.
On the other hand, despite the current price correction, ETH’s overall performance from the beginning of the year remains impressive. Between October 18 and December 13, it climbed about $750 from $1,567. Data shows that the price of the altcoin has increased by 80.96% since the start of the year.
