Ethereum Price Risks $2,600 Drop Despite JPMorgan’s New Fund on its Network

Ethereum price crashed for the second consecutive day, reaching its lowest level since Dec. 7. It has now dropped by ~40% from its highest point this year. Technicals suggest that the ETH token may be on the cusp of a strong bearish breakout to $2,600 despite JPMorgan selecting it for its first onchain fund.

Ethereum Price Alarming Pattern Points to a Dive to $2,622

The daily chart shows that the ETH price has slumped from the year-to-date high of $4,968 to the current $2,978. This retreat accelerated as the crypto market crash continued today. 

The chart shows that the token has formed a bearish flag pattern. This pattern started forming in October when it started its downward trend. It has already completed the formation of the flagpole section of this pattern and is now on the flag section. 

Ethereum price has started moving below the lower side of the flag pattern. As such, there is a risk that the token will continue falling, potentially to the lower side of the flagpole at $2,620, which is ~12% below the current level. 

A drop below that price means that the token may continue falling as sellers target $2,500. This ETH price prediction coincides with the Ultimate Support of the Murrey Math Lines tool. 

On the other hand, a move above the upper side of the flag section will invalidate the bearish outlook. Such a move will point to more Ethereum gains, potentially to the psychological point at $4,000.

JPMorgan Launches OnChain Fund on Ethereum

The bearish Ethereum price prediction is happening even as the network gains a major partner after the recent Fusaka upgrade. In a statement, JPMorgan said that it had launched its first onchain fund on the network. The fund is known as the My OnChain Net Yield Fund (MONY) and will be offered to qualified investors.

JPMorgan joins other Wall Street companies like BlackRock, Apollo Management, and Janus Henderson that have launched tokenized funds in the past few months. 

Ethereum has become the biggest chain in this industry, thanks to its legacy in the crypto industry. Data compiled by RWA shows that the network has over $12.6 billion in assets, a sizable sum considering that the industry has $18 billion in assets. 

JPMorgan’s selection of Ethereum is important as Jamie Dimon heads the company. Dimon has a long history of criticizing the cryptocurrency industry. 

It is also notable as it is the biggest bank in the United States by far with over $4 trillion. As such, there is a likelihood that other companies will embrace tokenization. Some of the potential ones are companies like Goldman Sachs and Bank of America.