While Ethereum’s current market conditions resemble past extreme lows, ETH is still the “most likely” place for institutional adoption, says Alliance DAO’s Qiao Wang.
Ethereum’s (ETH) price is gradually approaching oversold territory, sparking concerns about its ability to reach its previous all-time high before the current bull cycle ends. Data from Crypto Waves shows that as of March 13, ETH entered the weak zone and is now on track to move into the oversold area already filled with such altcoins as TRON (TRX), Maker (MKR), Lido (LDO), and many others.
Qiao Wang, the co-founder of web3 accelerator Alliance DAO, notes that ETH is about at the same oversold level as it was during the 2021 Terra collapse, 2018 deep bear, and the aftermath of the 2016 DAO hack, when the DAO, after raising $150 million worth of ETH through a token sale, was hacked due to vulnerabilities in its codebase, adding that it’s “really hard not to want to buy at these levels,” though how deep ETH might fall before reversing remains unclear.
As crypto.news reported earlier, Ethereum’s price is in its third consecutive week in the red as investors remain on the sidelines. On top of that, Santiment data shows that the number of daily active Ethereum addresses has continued falling. The network had 293,000 addresses on March 12, down from over 717,000 earlier this year.
Now, the path of the least resistance for ETH is bearish, with the initial target to watch being at $1,500. A break below this level could see it fall to the next psychological support at $1,000, a 45% drop from the current price. A move above the key support-resistance level at $2,500 would invalidate the bearish outlook. Despite the negative sentiment, the Alliance DAO co-founder believes ETH is still the “most likely place for institutional adoption to happen.”
