- Ethereum price is at risk of sliding below $1,688 and looking for lower support.
- Top 3 crypto XRP outpacing ETH only fuel the fire in the current decline for Ethereum.
- The worst-case scenario would be another 17% drop on the back of the BofA report.
Ethereum (ETH) price is taking a turn for the worse and has bulls being flabbergasted after Bank of America issued an analyst note that predicts a drop in usage if the speed of the Ethereum network does not pick up soon. Most worrying is that the report ends with the message that those who do not upgrade their network in due time are bound to fade away and end up existing. Although the losses are still relatively contained, this could become more severe as the report becomes more widespread, with a 17% drop in risk.
Ethereum price declines as a simple element as network speed is kicking it against the curb
Ethereum traders must think the world is upside down as smaller brother RIpple price is performing stellar against Ethereum price, which is taking a step back this week. The reason for the breakdown in correlation and the diversion in the sense of direction comes from an analyst report from Bank of America. The analyst mentions that the speed of the Ethereum network has not increased enough and is due for an upgrade if it still wants to claim its top 2 places as cryptocurrency.
ETH could be tanking firmly lower once this report becomes more widespread. Certainly, hedge and investment funds often do all the reading over the weekend and decide on their positions on Monday. Best-case support is found at $1,635, and only 8% losses get priced in, while worst-case near 20% losses need to be factored in towards $1,450.
ETH/USD weekly chart
Often analyst reports are just one in a bunch and could be disregarded quickly once the next big catalyst or headline offers itself. Should the pessimistic mood of last week start to fade a bit, the Ethereum price could be lifted higher. At least a test at $1,928 would be guaranteed.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
This is why a mere 15% rally in Lido DAO price could be a game-changer for LDO holders

Lido DAO price is following the rest of the market due to the regulatory events that transpired in the last few days. However, the DeFi token is generally unlikely to pursue the path set by any other cryptocurrencies, including the likes of Bitcoin. This might play in favor of LDO.
LINK holders opt to sell as Chainlink price falls by 9% in a week, new investors on the rise

Chainlink price, after following the broader market cues, is nearing a key support level that was last visited by the coin in January this year. This has discouraged LINK holders to the point where selling has become a preferred option. However, newer investors are countering this selling by accumulating, preventing a severe decline.
Optimism price could rally 50% as network upgrade inspires new wave of OP adoption

Optimism (OP) price appears to have found support after a new buyer congestion zone came into effect to prevent the free fall. Accordingly, the Ethereum Layer 2 (L2) token is trading horizontally, giving bulls time to accumulate OP at affordable rates.
Binance CEO addresses chat records disclosed by the SEC

Binance CEO Changpeng Zhao has issued an internal address to company staff, asking them to focus on work and developing products people can use. The internal memo comes after the United States Securities and Exchange Commission (SEC) disclosed chat records between Binance employees in an attempt to support its case against the largest crypto exchange by trading volume.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish

Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.