Ether Drops Below $1K, Dragged Down By BTC Slide – What’s The Next ETH Support?
June 18 2022 - 9:25AM
NEWSBTC
The cryptocurrency market is still stunned by last week’s
precipitous decline. In 10 days, Ether shed around 45 percent of
its value. On the four-day chart, the Ethereum (ETH) price has now
returned to the historical RSI low recorded in 2018 when the
cryptocurrency traded at $81. On Saturday, ETH values fell below
crucial levels and are currently trading in the triple digits as
the recent crypto sell-off continued. According to data provided by
Coingecko, as of the time of writing, ETH is trading at $1,008, a
decrease of about 40 percent over the past week. Suggested Reading
| Bitcoin Breaches $19K Level – Will Selloff Continue? What’s The
Next Bottom? Ether Drops To As Low As $997 ETH is currently selling
at $997.61 on Etherscan, a decrease of approximately 9 percent over
the last 24 hours. The breach of this support level is expected to
presage heavier losses for Ethereum. The bears are in complete
control of the market, and there are no major buyers. In the
bearish scenario, if sellers force the price below $900, the
probable demand zone is between $700 and $900. Upon
reaching this region, ETH may enter the accumulation phase.
Currently, inflation, a wobbly stock market, rising interest rates,
and worries of a recession are fueling negative sentiment on the
stock and cryptocurrency markets. ETH total market cap at $122
billion on the daily chart | Source: TradingView.com A Shot At
$1,700 In A Bullish Scenario In a bullish situation, ETH will
certainly approach $1,700 in static resistance. The ability to
overcome this barrier depends on the purchasing power of the
market. This eventuality seems unlikely given that the current
macroeconomic climate has caused investors to view high-risk assets
with skepticism. Recent reports indicate that Ether’s developers
have opted to delay the network’s move to a proof-of-stake (PoS)
consensus while the bear market persists. This improvement is
anticipated to terminate the reliance on proof-of-work (PoW) mining
and the Merge scalability solution, which has been in development
for six years. Suggested Reading | Bitcoin At $20K Could Be
‘New Bottom,’ Commodity Expert Suggests, And Here’s Why Heavy
Market Liquidation Pulls Down ETH The recent decline of ETH, the
second-largest cryptocurrency, is due to the liquidation of a
significant investment, possibly by Three Arrows Capital. The
liquidation led to a substantial sum of ETH being unloaded on the
open market. After the Federal Reserve raised interest rates by 75
basis points, the highest increase in the last three decades, the
stock market inched up Wednesday afternoon. According to
Edward Moya, a senior market analyst at OANDA, the fact that the
cryptocurrency market did not follow is “worrying for some
investors.” Analysts estimate that Bitcoin and Ether can decline up
to 85 percent during bear markets. Due to the impossibility of
market prediction and timing, there is never an “ideal” time
to buy in cryptocurrencies. However, according to analysts, now
could be a good time to enter the market because prices are cheap.
Featured image from Arch20, chart from TradingView.com
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Sep 2023 to Sep 2024