The long-awaited Ethereum 2.0 was finally activated last week, pushing Ethereum from the proof-of-work to the proof-of-stake era. In the months before the migration, the ETH token gained significant momentum against the USD and Bitcoin BTC. However, the current price trend does not support the previous bullish ETH price prediction that was made by analysts before the migration.
ETH Price Falls-Analysts Predict a Long-term Bearish Momentum Against BTC
In the three months before the Ethereum 2.0 upgrade, the price of the ETH token surged by a whopping 60% against BTC. This surge was an indication of strong investor confidence in the token and the future of Ethereum. In just 10 days pre and post-merge, the price of ETH has lost 20% of the initial 60% gain against BTC.
The merge, which has brought the Ethereum network to a less energy-intensive era, was predicted to place ETH in a stronger position against Bitcoin. So, why is the token showing extreme signs of weakness just days later?
The price of the ETH token is currently falling because of a major increase in selling pressure from grassroots investors. Before the merge, everyone was bullish on the token and was expecting a major bull run right after the merge. Unfortunately, despite the successful update, the token failed to gain any significant bullish momentum. This sparked panic selling that may take ETH to lower lows if the bleeding doesn’t stop.
ETH Price Analysis Today
At the time of writing, the price of the ETH token was $1,295.11. It was down by 11.03% within 24 hours. The token is trading in the $1,287.42 and $1,457.57 range and is now at risk of falling below the key technical support at $1,280. A fall below this level may lead ETH to retest the $900 level for the first time in several months. Whether or not ETH will recover remains to be seen.