The price of Ethereum has suffered losses since the start of the year. Over the past few days, the cryptocurrency market has recorded losses, with ETH one of the top losers amongst the leading cryptocurrencies.
The cryptocurrency recently dropped below the $310 mark before recovering to its current $327. With the bear market, the question traders and investors are asking is how low can Ethereum go?
Ethereum likely to drop to the $200 level
Over the past 30 days, Ethereum price has lost roughly 40% of its value. It was trading above the $500 mark a month but has plummeted to its current level of $327 after dropping below the $310 mark earlier.
The drop coincided with that of the wider cryptocurrency market. The U.S SEC announcing that it has postponed its Bitcoin ETF decision saw the cryptocurrency market react negatively, with Ethereum recording massive losses.
Prices are still low despite some good news about Ethereum and the entire cryptocurrency market surfacing over the past few days.
Crypto bear market
The bear market which started at the start of the year has seen all cryptocurrencies record massive losses. A market turnaround is expected, but there is a belief that prices need to reach a bottom before recovery can take place.
For each of the previous drop in prices, Ethereum has usually dropped more in terms of percentages compared to Bitcoin.
Even though it has retraced back, the price can drop lower. If the Bitcoin price drops below the $6,000 mark, then Ethereum would drop below the $300 mark.
Historical price recovery of Ethereum
Over the past one year, Ethereum doesn’t have a good track record of price recovery after a decline. However, it has recorded some impressive retracements this year.
On February 2nd, the price of the second largest cryptocurrency dropped from $872 to $649 on February 6th. This represented a 25% decline within just 3 days. However, ETH turned embarked on a bullish run in the following days that saw it gain 30% to trade at $951.
From that high, it began a steady decline to reach a low of $370 on April 7. This means that it lost more than 60% of its value within two months. ETH price didn’t stay down for long as it began rising slowly.
By the 4th of May, it has recovered an impressive 54% of what it lost. It recovered from its $370 dip to trade at $816. This shows that Ethereum has the potential to recover even after recording massive losses.
Even though the Ethereum price has declined from its all-time high over the past few months, investors are still confident in the coin’s potential.
At the moment, it can be regarded as the most useful cryptocurrency in the world. That alone can see it recover its lost value when the time is right.