• Ethereum fell by 1.87% on Wednesday and dropped below the $1,200 price level
• Ethereum price is ailing from the weak sentiment in the crypto sector, and further downsides are possible
• All cryptocurrencies in the top 10 by market cap were in the red, indicating that the crypto market is still far from its peak
Ethereum, the second-largest cryptocurrency by market capitalization, is ailing from the weak sentiment in the crypto sector. On Wednesday, Ethereum fell by 1.87%, relinquishing the $1,200 price level and pointing to further downside. The loss was not unique to Ethereum; all the top 10 cryptocurrencies were in the red. This indicates that the crypto market is still far from its peak and that Ethereum has yet to find a bullish footing.
The recent price action of Ethereum shows that the cryptocurrency is struggling to gain momentum. Despite the transition to the proof-of-stake protocol and the merge this year, the price has failed to take off. Ethereum co-founder Vitalik Buterin has urged crypto fans to focus on the technology rather than the price. But to crypto speculators, the price is the most important factor.
The answer to the question of when the next bull run will occur is still up in the air. Ethereum is currently trading at just four times lesser value than its 2021 highs, which suggests that the cryptocurrency has huge potential. However, crypto fans may need to wait a little longer before jumping into the ship.
It is clear that Ethereum still faces further downside before it can find a bullish footing. Investors should wait for more positive news before entering the market and should be aware of the risks associated with trading cryptocurrencies.