The cryptocurrency market is still stunned by a brutal crash last week: Within ten days, Ethereum (ETH) has lost about 45 percent of its value, while all other coins are struggling as well.
Ethereum is trading below $ 1,000
Looking at the four day chart, Ethereum (ETH) price is now back to the historically low RSI. This was recorded in 2018 when the cryptocurrency was trading at $ 81.
On Saturday, ETH values fell below critical levels. They are currently in three digits – crypto sales continue.
According to data provided by Coingecko, ETH is trading at $ 958 at the time of writing. That’s down about 40% in the last week.
Ethereum drops to $ 958
The loss of the level of support is expected to lead to greater losses for Ethereum. The bears are in complete control of the market and there are no big buyers.
In the bearish scenario, if the sellers push the price below $ 900, the probable bid zone is between $ 700 and $ 900. The main CryptoTony trader even thinks that a reduction to $ 600 is possible:
We are currently responding at the bottom of the $ 1,350 – $ 900 range. I’m still looking for that push down to $ 700 – $ 600, but maybe I’ll be here for a while before we do pic.twitter.com/Edp56crGNM
– Crypto Tony (@CryptoTony__) June 19, 2022
Once that area is reached, ETH may enter the accumulation phase.
Currently, inflation, the fat stock market, rising interest rates and fears of a recession are creating a negative mood in the stock and cryptocurrency markets.
$ 1,700 possible: bullish case
In a bullish situation, ETH could approach the $ 1,700 static resistance. The ability to overcome this barrier depends on the purchasing power of the market.
That possibility seems unlikely as investors are skeptical by the current macroeconomic environment of seeing dangerous assets.
Recent reports suggest that Ethereum developers have also chosen to delay the network’s transition to proof-of-concept (PoS) as long as the bear market continues.
The upgrade to ETH 2.0 is expected to end the reliance on work-proof mining (PoW) and the compound scaling solution, which has been under development for six years.
Heavy market liquidation draws lower ETH
The recent collapse in ETH, the second largest cryptocurrency, comes as a result of the liquidation of a significant investment – possibly Three Arrows Capital. The liquidation has resulted in a significant amount of ETH being dumped on the open market.
After the Federal Reserve raised interest rates by 75 basis points, the stock market advanced higher on Wednesday afternoon. This is the highest increase in three decades.
According to Edward Moya, senior market analyst at OANDA, the fact that the cryptocurrency market has not done the same is “a concern for some investors.”
Analysts estimate that Bitcoin and Ethereum could fall as high as 85 percent in bear markets.
Due to the impossibility of market forecasting and timing, there is never an “ideal” time to buy cryptocurrencies. However, according to analysts, now may be a good time to enter the market as prices are cheap.
Text credit: Newsbtc
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