While Ethereum (ETH) is nearing oversold territory, Alliance DAO co-founder Qiao Wang believes it remains the strongest contender for institutional adoption, even amid market uncertainty.
Ethereum’s Technical Indicators Show Extreme Lows
As of March 13, Ethereum’s price action is approaching a critical level, entering the weak zone, according to Crypto Waves data. ETH is now on track to move into the oversold territory, a category currently occupied by altcoins such as TRON (TRX), Maker (MKR), and Lido DAO (LDO).
Qiao Wang, co-founder of web3 accelerator Alliance DAO, noted that ETH’s technical levels are similar to those observed during past market crashes:
“ETH is about at the same oversold level as it was during the 2021 Terra collapse, 2018 deep bear (‘two-digit shitcoin’), and after the 2016 DAO hack.” – Qiao Wang
The 2016 DAO hack saw the project raise $150 million worth of ETH before a code vulnerability led to one of the biggest exploits in Ethereum’s history. ETH’s subsequent price decline mirrored today’s bearish trend, leading Wang to suggest that current levels could present a long-term buying opportunity. However, he acknowledged that it remains unclear how deep ETH might fall before a reversal occurs.
Ethereum Struggles as On-Chain Metrics Decline
As reported by crypto.news, ETH has been in the red for three consecutive weeks, with investor sentiment weakening. Data from Santiment shows a steady decline in active Ethereum addresses, dropping from 717,000 earlier this year to just 293,000 as of March 12.
Despite Ethereum’s challenges, Qiao Wang remains bullish on its long-term potential, emphasizing that institutional investors may still favor ETH:
“However poor the outlook is for a given asset, there is a price at which it makes sense to own it. But to answer your question, if anything, ETH is still the most likely place for institutional adoption to happen.” – Qiao Wang
Bearish Outlook With Key Support Levels to Watch
Currently, the path of least resistance for ETH is downward, with technical indicators suggesting potential downside risks:
- First target: $1,500, acting as initial support.
- Break below $1,500: ETH could drop to the psychological support level of $1,000, marking a 45% decline from its current price.
- Bullish reversal threshold: A move above $2,500 would invalidate the bearish outlook.
While Ethereum’s technical indicators mirror previous market crashes, institutional interest and fundamental network growth could still drive long-term recovery. The market now awaits whether ETH can hold its key support levels or if further declines will test investor confidence in the world’s second-largest cryptocurrency.
