Bloombergs McGlone Queries Latest Ethereum Sell-Off

Ethereum

Bloombergs McGlone Queries Latest Ethereum Sell-Off

Ethereum (ETH) is facing downward pressure as the coin, within the last 24 hours, has lost 7% of its value despite a bullish ecosystem trend. It has continued to fall, unable to find support at the $1,900 level. This has sparked concerns among investors, who wonder whether ETH could reverse the trend.

Ethereums sharp decline sparks market concerns

Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence, has provided insights into Ethereums price trajectory. According to McGlone, the broader financial market must pay attention to Ethereums price trajectory.

He believes a relationship exists between ETHs current performance and other risk assets. McGlone opines that if Ethereum declines further, it implies a weakness of stocks on the S&P 500. He implies that Ethereum “may guide the way for risk assets.”

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This suggests that if ETH continues its downward journey, other top altcoins may join the downtrend in the midterm.

McGlone expressed concerns about Ethereums performance, wondering if the coin was plummeting to 2020 price levels.

“Is $1,000 next？” he queried.

The senior macro strategist‘s post suggests that ETH could decline significantly as it battles to retest $2,000. He noted that Ethereum’s failure to hold above this critical psychological level could discourage investors, ushering in a bearish outlook.

Ethereums market outlook

According to CoinMarketCap data, Ethereums price was changing hands at $1,884 as of this writing. However, investors interest has not waned, as trading volume has spiked by a significant 36.92% to $17.54 billion despite the price action.

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Ethereums long-term fundamentals staying strong might allow it to weather the downward pressure and emerge stronger. However, this is after the ongoing profit-taking among market participants dies down.

Additionally, Ethereum investors are exercising caution to see if growing adoption, such as the launch of a bank-issued stablecoin, could trigger a price reversal.