80% Chance That ETH Price May Drop to $2492 Before June, Bruce's Crypto Price

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80% Chance That ETH Price May Drop to $2492 Before June, Bruce's Crypto Price Prediction

Diverse Responses in the Crypto Sphere Post-CPI Figures Release
Following the unveiling of the Consumer Price Index (CPI) data by the United States on May 15, the cryptocurrency market witnessed a myriad of reactions. Bitcoin experienced a substantial surge, marking a 6% uptick, whereas Solana price saw an impressive spike of nearly 15%. Conversely, Ethereum, despite its prominent stature as the second-largest cryptocurrency by market capitalization, only observed a marginal increase of approximately 3%. This discrepancy in market performance has sparked apprehension among investors and analysts concerning Ethereum's immediate future. The pressing question arises: does Ethereum confront significant short-term uncertainties?


Scrutinizing the Factors Contributing to Ethereum's Short-term Instability
Various factors contribute to the perceived short-term vulnerabilities of Ethereum. Chief among these is a noticeable dearth of liquidity within the broader crypto realm. The limited available liquid assets predominantly flow into Bitcoin and Solana, leaving altcoins like Ethereum grappling to attract adequate investment. This liquidity squeeze has significantly hampered Ethereum's ability to capitalize on positive market shifts.

Furthermore, the market is currently inundated with venture capital (VC) coins, many of which boast exorbitant fully diluted valuations (FDV). These lofty valuations dissuade retail investors from entering the fray, as the high FDV implies restricted upside potential. Consequently, some market participants are commencing liquidation of their holdings and exiting the arena. This trend is particularly worrisome for Ethereum, given that a substantial portion of these VC coins operate on the Ethereum network. The departure of market participants could exert considerable downward pressure on Ethereum's price in the near term.
Additionally, the imminent unlocking of numerous cryptocurrencies presents another looming risk. As these tokens become available for trading, the augmented supply could further dampen Ethereum's price. The confluence of low liquidity, high FDV coins, and impending token unlocks collectively present a daunting backdrop for Ethereum in the short run.

Predicted Price Fluctuations of Ethereum and Investment Perspectives
Considering these factors, there exists a notable likelihood that Ethereum's price may plummet below the $2,500 threshold in the immediate future, with an estimated 80% probability of such a downturn. In the initial phase of decline, ETH price might plummet to $2492. Should that support level falter, the price could continue its descent to $2163. Under bleaker circumstances, ETH price may spiral down to approximately $1800. Should

Ethereum's price hover around $1,800, it could potentially herald a strategic buying opportunity for investors. Despite the short-term hazards, the long-term outlook for Ethereum remains optimistic.

The anticipated short-term downturn likely stems from market participants orchestrating a washout to amass more tokens at discounted prices. This washout phase, characterized by heightened selling pressure and ensuing price dips, represents a common tactic employed by major market players to consolidate their positions. Once this phase concludes, Ethereum is anticipated to rebound and embark on a fresh upward trajectory.

Investors ought to view this potential price slump as a chance to enter the market at a more favorable cost basis. The underlying fundamentals of Ethereum, including its robust blockchain infrastructure and diverse range of applications, remain robust. As the market stabilizes post-washout, Ethereum is poised to resume its ascent, buoyed by renewed investor confidence and ongoing technological innovations.

At present, divesting Ethereum and acquiring Bitcoin and Solana appears a prudent move.

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Conclusion:
While Ethereum contends with notable short-term perils stemming from liquidity constraints, high FDV coins, and forthcoming token unlocks, these challenges do not signify a protracted downturn. Astute investors should closely monitor the market and be prepared to capitalize on potential buying opportunities amid price downturns. The long-term prospects for Ethereum remain promising, with the current volatility phase offering a strategic entry point for those seeking to invest in one of the most influential cryptocurrencies in the domain.

Disclaimer: The above content does not constitute investment advice from BingX. Investing in cryptocurrencies carries inherent risks, potentially resulting in the loss of entire capital. Investors should conduct their own research (DYOR). BingX bears no responsibility for any incurred losses.