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▲ Ethereum (ETH)/AI Generated Image
Ethereum (ETH) investor sentiment is rapidly cooling amid the risk of a $2,000 line collapse, with prediction markets placing more weight on a potential fall to $1,500 than a rebound to $3,000.
According to Decrypt on May 27 (local time), participants in the prediction market Myriad see a higher probability of Ethereum falling to $1,500 than recovering to $3,000 as its next price movement. Ethereum recently traded around $2,057, having fallen 0.8% in 24 hours and over 10% in the last month.
In Myriad, the probability of Ethereum dropping to $1,500 has risen to 63%. This probability has increased by over 13% in the past week. Decrypt reported that as Ethereum has fallen to just above the $2,000 mark, bets on further declines have become stronger than expectations for a short-term rebound.
BitMine Immersion Technologies, an Ethereum financial strategy company, acquired an additional $230 million worth of Ethereum last week, increasing its held asset value to over $11 billion. However, Decrypt noted that even with such large-scale accumulation, it has not led to a general recovery in Ethereum demand.
Ethereum spot ETFs saw net outflows for 11 consecutive trading days. According to Farside data, nearly $500 million flowed out of Ethereum spot ETFs during this period. Ryan Rasmussen, Director of Research at Bitwise, told Decrypt, “We are deep in a bear market affecting almost all crypto assets, including Ethereum.”
Rasmussen added, “Nevertheless, Ethereum maintains a significant share in the stablecoin and tokenized asset markets, and financial institutions continue to build on Ethereum. We expect Ethereum to be valued higher once the crypto market passes a turning point and exits the bear market.” On Polymarket, the probability of Ethereum returning to $1,500 by 2026 was presented as 51%, while the probabilities of reaching $3,500 and $4,000 were only 26% and 16%, respectively.
Ethereum remained about 59% below its all-time high of $4,946 recorded in August. In contrast, Bitcoin (Bitcoin, BTC) was approximately 40% below its peak of over $126,000 recorded in October. Decrypt reported that Ethereum is experiencing a larger decline than Bitcoin amid ETF outflows and bearish bets in prediction markets.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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