Ether Drops Below $1K, Dragged Down by BTC Slide


The cryptocurrency market is still stunned by last week’s steep decline. In 10 days, Ether lost about 45 percent of its value.

On the four-day chart, Ethereum (ETH) price has now returned to its historic 2018 RSI low as the cryptocurrency traded at $81.

On Saturday, ETH values ​​fell below critical levels and are currently trading in the triple digits as the recent cryptocurrency sell-off continued.

According to data provided by Coingecko, ETH is trading at $1,008 at the time of writing, down about 40 percent over the past week.

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Ether drops to just $997

ETH currently sells for $997.61 on Etherscan, down about 9 percent in the past 24 hours. The crossing of this support level is expected to portend heavier losses for Ethereum.

The bears have complete control of the market and there are no big buyers. In the bearish scenario, if sellers force the price below USD 900, the likely demand zone is between USD 700 and USD 900. Upon reaching this area, ETH can enter the accumulation phase.

Currently, inflation, a shaky stock market, rising interest rates and concerns about a recession are driving negative sentiment in the stock and cryptocurrency markets.

ETH total market cap at $122 billion on the daily chart | Source: TradingView.com

A chance at $1,700 in a bullish scenario

In a bullish situation, ETH is sure to approach $1,700 in static resistance. The ability to overcome this barrier depends on the purchasing power of the market.

This possibility seems unlikely, as the current macroeconomic environment has caused investors to view risky assets with skepticism.

Recent reports indicate that Ether’s developers have chosen to delay the network’s transition to a proof-of-stake (PoS) consensus as the bear market continues.

This improvement is expected to end the reliance on proof-of-work (PoW) mining and the Merge scalability solution, which has been in development for six years.

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Heavy Market Liquidation Pulls ETH Down

The recent decline in ETH, the second largest cryptocurrency, is due to the liquidation of a significant investment, possibly by Three Arrows Capital. The liquidation resulted in a significant amount of ETH being unloaded into the open market.

After the Federal Reserve raised interest rates by 75 basis points, the highest rise in three decades, the stock market rose Wednesday afternoon.

According to Edward Moya, a senior market analyst at OANDA, the fact that the cryptocurrency market was not following is “worrying for some investors”.

Analysts estimate Bitcoin and Ether could fall as much as 85 percent during bear markets.

Due to the impossibility of market forecasting and timing, there is never an “ideal” time to buy cryptocurrencies. However, analysts say now could be a good time to enter the market as prices are low.

Featured image of Arch20, graph of TradingView.com

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