Bloomberg’s Mike McGlone warns of Ethereum sustained downside risk.
Other strategists disagree on the near-term outlook.
The predictions come amid the ERC-8004 announcement.
A prominent Bloomberg analyst has issued a bearish outlook on Ethereum’s price, warning that the world’s second-largest cryptocurrency could fall below $2,000 and struggle to regain higher levels.
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Bloomberg Intelligence senior commodity strategist Mike McGlone said Ethereum is likely drifting toward the lower end of its multi-year trading range.
He believes downside risks outweigh upside potential.
“Ether appears to be heading toward the lower end of its $2,000–$4,000 range since 2023,” McGlone wrote.
Ether appears to be heading toward the lower end of its $2,000-$4,000 range since 2023. I see greater risks of it staying below $2,000 than above $4,000, especially when stock market volatility rebounds. pic.twitter.com/1IAMV10Jwe
“I see greater risks of it staying below $2,000 than above $4,000, especially when stock market volatility rebounds.”
McGlone’s assessment ties Ethereum’s outlook closely to macro conditions, particularly equity market volatility.
A renewed spike in risk aversion, he suggests, could pressure speculative assets such as crypto and limit Ethereum’s ability to sustain rallies.
Market Strategists Push Back on the Bearish View
Not all analysts share McGlone’s outlook.
Joel Kruger, markets strategist at LMAX Group, said recent Ethereum and Bitcoin price action points to stabilization rather than renewed weakness.
“Over the past 24 hours, crypto markets have traded with a firmer tone, supported by broad-based U.S. dollar selling and a renewed surge in global equities, which have helped reinforce risk appetite across asset classes,” Kruger told CCN.
From a technical standpoint, Kruger said both Bitcoin and Ethereum are showing signs of recovery from key November lows, suggesting a medium-term base may be forming.
“This latest rebound is helping to stabilize momentum and could be setting the stage for a push back toward recent highs, provided external conditions remain supportive,” he said.
Kruger added that geopolitical risk premiums remain contained for now, allowing investors to refocus on growth and monetary policy.
The Federal Reserve’s policy decision, he said, is likely to be the dominant short-term catalyst.
“A dovish-leaning hold could further support the recovery narrative, while any hawkish surprise risks could undermine the current rebound,” Kruger noted.
Bearish Call Coincides With AI-Linked Ethereum Development
Market views on Ethereum remain contrasting.
This comes as ERC-8004 was announced on Ethereum. The new standard is designed to enable identity and reputation systems for AI agents.
Ethereum shared the ERC-8004 standard was a way for AI agents to prove identity claims and request validation using the network as a neutral reference layer.
ERC-8004 is going live on mainnet soon.
By enabling discovery and portable reputation, ERC-8004 allows AI agents to interact across organizations ensuring credibility travels everywhere.
This unlocks a global market where AI services can interoperate without gatekeepers. https://t.co/Yrl0rvnSxj
“This unlocks a global market where AI services can interoperate without gatekeepers,” Ethereum wrote.
Each agent is assigned a portable identity in the form of an ERC-721 non-fungible token, with associated metadata detailing its capabilities and endpoints.
Davide Crapis, AI lead at the Ethereum Foundation, confirmed the upcoming mainnet deployment.
“The ERC-8004 standard is coming to mainnet,” Crapis said, referring to February as the project’s “genesis month.”
CCN’s Ethereum Price Outlook
CCN analyst Victor Olanrewaju shared his view on Ethereum’s longer-term price outlook. He said it may depend less on short-term volatility.
Instead, it is more influenced by the behavior of large holders.
Looking at historical data, Olanrewaju noted that expansions in the number of addresses holding at least 10,000 ETH have typically preceded sustained bull markets rather than market tops.
The balance of large ETH holders has recently declined.
However, Olanrewaju said that renewed accumulation after extended drawdowns has historically marked the return of long-term conviction.
ETH/USD Daily Chart | Source: Trading View
“In the short term, it does not seem like ETH’s price will break out soon,” he wrote.
A sustained hold above $2,800 could support a recovery toward the $3,170–$3,500 region.
A breakdown, however, could expose the support near $2,620.
“While short-term volatility is likely to persist, the re-expansion of large ETH balances points to a structurally constructive long-term outlook,” Olanrewaju said.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
