Analystsclaim that although the long-term fundamentals of Ethereum (ETH) are intact,its short-term price action will bring pain.

Thesame way with Bitcoin (BTC), ETH has been consolidating after posted a highback in June 2019. Based on the crypto’s $363.30 high in 2019, Ethereum haslost more than 62% of price value. The aforementioned losses tend to increase,considering the crypto’s trading value of $1,424.30 back in 2018. From thecrypto’s all-time high, it shed more than 90% of its value.

Anumber of retail traders expressed their sentiments that the extreme losses canbe an indication that the bottom is about to start. But some analysts said thatinvestors might experience more pain as the persistent bear market is forming.

Currently, the secondlargest crypto asset in terms of market cap is down over 10% from the high in2020 over the US Dollar. Besides, the price of ETH is poised to test thesupport level of $148 before a new rally.

Since Ethereum has seenwith some bearish signs, some people speculate that it might decline under a $158support level. Based on the data released by Kraken, there’s a majorcontracting triangle that started to form close to the $158 support level inthe 4-hour ETC/USD chart. So, the pair could either extend its decline to $148level or rally towards $165.

Can ETH Gain Double Digits Before the Recovery?

Some analysts expectthat ETH might experience a period of depression.

Back in 2017, ETH wastrading under $8.00 and then fell to $7.00 level before the mega bull rally.So, the crypto asset is speculated to enter a more painful leg down before arecovery.

However, once theEthereum bottoms out, a lot of long-term investors can enjoy substantial gains.Analysts predict that after a decline under $100, ETH would rise to $1,000 andeven above in 2021.

Slumping Prices vs. Growing Fundamentals

No matter how the pricesof Ethereum slump, its fundamentals continue to grow. One of the reasons behindthis continued progress is Decentralized Finance (DeFi). DeFi users can takeadvantage of more advanced financial services as well as censorship resistance.So far, more than 3 million Ethereum are locked in these tools.

Furthermore, there’s agrowing of unique ETH addresses due to the parabolic rise of Ethereum holdingin Decentralized Finance. In fact, it surged to over 84 million from more than5 million in 2019. In short, users of ETH continue to grow.

Most of Ethereummaximalists have already expressed their excitement in the introduction ofphase 0 of Ethereum 2.0. It is expected that the initial step in the transitionof proof of work-proof of the stake will take place in the first quarter of2020. In the ETH 2.0’s phase 0, users can stake their Ethereum holdings.

From a fundamentalperspective, ETH is likely poised to more developments. However, people in thecrypto space require more patience before the price of ETH catches up.