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Ethereum (ETH) Price: Drops 20% as Sentiment Reaches Yearly Low
- Ethereum's sentiment has hit a yearly low, indicating a potential market reversal, while its price dropped over 20% in the last month, underperforming Bitcoin.
- Analysts suggest that extreme bearish sentiment often signals market bottoms and may lead to significant rebounds.
- Trump family-backed World Liberty Financial increased its Ethereum holdings by $10 million in a week, showing growing confidence in the asset.
- ETH currently faces resistance at $2,220, with key support at $2,100 and $2,050.
- The decline in Ethereum's sentiment aligns with its underperformance compared to other top cryptocurrencies and may indicate a potential turnaround in the market.
- Historically, extreme bearish sentiment has often marked market bottoms, leading to potential price rebounds, according to market experts.
- Institutional interest in Ethereum remains strong, with factors like decreasing interest rates and regulatory developments potentially aiding in price recovery.
- Ethereum's technical indicators, including the MVRV Z-Score, suggest undervaluation, hinting at a possible price recovery in the future.
- Structural issues like weakening network activity and competition from other blockchains are noted to affect Ethereum's performance in the market.
- Short-term price analysis shows Ethereum attempting to break resistance levels, facing hurdles at $2,220 and potentially aiming for $2,500 in the near term.
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