The Scary Scenario for Ethereum: The Danger of Plummet While Waiting for Altcoin Season! - Coin Bulletin

Ethereum price may decline to the $1,000 level in parallel with the drop in US stocks, which could be a sign of a broader dump for altcoins.

Bloomberg senior analyst Mike McGlone points out that as Ethereum continues to show a close correlation with risky assets, the price may further depreciate alongside the ongoing decline of US stocks. As the likelihood of Ethereum's price dropping to the $1,000 level increases this year, a recovery towards $2,000 could be a sign that risky assets are making a strong comeback.

The current price movement of Ethereum continues in parallel with the S&P 500 index. According to McGlone, Bitcoin's (BTC) weakness may further negatively impact altcoins, and Ethereum is likely to be more affected by this process. This could lead to the leading altcoin falling back to the $1,000 level.

While waiting for the altcoin season, it may get dumped!

The price of Ethereum continues to show correlation with broad market indices like the S&P 500. Charts indicate that while ETH is revolving around the $2,000 level, the S&P 500 is following a trajectory shaped by the 200-day moving average. This situation highlights how sensitive risky assets are to overall market trends.

According to McGlone, the price of Ethereum may decline in parallel with the weakening of Bitcoin and the poor performance of the S&P 500. In this scenario, a return of Ethereum to the $1,000 level could lead to a general get dumped in the altcoin market.