Matrixport, a financial services network, has made a bold prediction regarding Ethereum price, foreseeing a substantial decline potentially down to $1,000. Matrixport attributes this forecast to the imminent liquidation of creditors’ assets on the FTX exchange, a factor that Matrixport believes will significantly impact Ethereum’s value.
Matrixport’s Concerns About Ethereum
Matrixport’s latest report highlights concerns about Ethereum’s performance, particularly as it has fallen below crucial support levels at $1,650 and $1,600.
The network’s analysis raises the possibility of Ethereum’s price declining to and potentially below $1,500, with a significant drop to $1,000 looming on the horizon. This prediction is based on projections related to the Ethereum ecosystem’s revenues.
One of the key drivers behind this anticipated price dip is the impending sale of altcoins held by FTX creditors.
FTX Creditor’s Altcoin Sales
FTX holds a substantial amount of Ethereum, estimated to be at least $90 million or over 56,000 ETH. The introduction of this substantial quantity of ETH into the market is expected to create a supply shock, potentially pushing the asset’s price down to $1,000.
Matrixport’s report highlights the fact that Ethereum experienced an issuance of 15,000 ETH in the previous week, surpassing the number of tokens burned, which was 11,000. This data indicates an increase in the overall circulating supply of ETH during that week.
Over the last 30 days, the issuance and burning of ETH amounted to 799,000 and 783,000 ETH, respectively, suggesting a marginal 0.01% increase in supply. When combined with the forthcoming sale of FTX-held ETH. This additional supply could exacerbate the situation and contribute to the predicted price drop.
It’s important to note that while FTX plans to liquidate about $200 million weekly. Not all of the 56,000 ETH will be released into the market at once.
Current Ethereum Price and Future Outlook
Despite Matrixport’s warning of impending price declines, Ethereum has exhibited some resilience, rallying with a 1.3% gain in the past 24 hours. At present, ETH is trading at $1,613, having touched a 24-hour low of $1,539. The former support level at $1,600 has now become a resistance point.
Matrixport’s forecast suggests that once FTX initiates its liquidation process, Ethereum may experience a significant decline, which will push it below key support levels at $1,504 and $1,400, potentially reaching the $1,000 mark.
Potential Impact on Other Altcoins
Matrixport’s outlook extends beyond Ethereum, raising concerns about other altcoins. Solana, for instance, recently dipped below the $19 support level and is showing signs of further strain. FTX currently holds approximately $685 million in Solana. Significant sell-offs could drive its value below $15 and even toward $10.
Additionally, Matrixport has expressed apprehension about the upcoming release of ApeCoin (APE), which will allow insiders to sell another 11% of the tokens this week, potentially impacting the altcoin market further.
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