Ethereum faces increased downside risk as macro volatility rises, with Bloomberg Intelligence strategist Mike McGlone pointing to a trend towards the lower end of its long-standing trading range, with support at $2,000 on the horizon.
Strategist flags downside bias in Ethereum as $2,000 support comes into focus
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, shared a technical outlook on social media platform
he said:
“From 2023 onward, Ether appears to be heading toward the lower end of the $2,000 to $4,000 range. We see a greater risk of Ether staying below $2,000 than above $4,000, especially if stock market volatility picks up.”
The post included a long-term Ethereum price chart showing repeated failures above the $4,000 level and multiple declines towards the lower end of the range. Visuals highlighted the way $ETH Since peaking near previous cycle highs, it has bounced between key resistance and support zones, supporting his view that downside pressure prevails during times of tight financial conditions, reduced liquidity, and increased correlation to equities.
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Beyond the immediate range movement, McGlone had previously warned about Ethereum's price movement, linking it to a long-term underperformance compared to other major assets. In a post shared on However, it will be the sixth year for the No. 2 cryptocurrency. If the underlying volatility in the US stock market means a reversal, what will happen to all risk assets? It is only a matter of time.” This earlier warning framed Ethereum as a laggard within the overall market strength and underscored his view that a return to volatility in the US stock market could weigh on risk assets before a sustained rally is realized.
FAQ ⏰
- Why does Mike McGlone recognize Ethereum's downside risk?
He points to increased volatility in the stock market and a tighter correlation with risk assets. - What trading range is Ethereum currently in?
Ethereum has been trading between roughly $2,000 and $4,000 since 2023. - How does stock market stress affect the price of Ethereum?
Equity drawdowns often cause deleveraging, reducing the flow of speculative crypto assets. - What factors will continue to support Ethereum in the long term?
Ongoing defi development, smart contract usage, and organized blockchain experimentation.
