On the second half of 2018, Ethereum (ETH) was traded with other risky assets due to the persistent fear of higher inflation and rising rates. This could lead to further decreases going into the third quarter, according to some analysts.
Following a four-day losing skid, ETH’s price fell roughly 6 percent to $1,044 on Thursday. The ETH/USD pair has also broken below its interim rising trendline support, creating an “ascending triangle” pattern in conjunction with a horizontal trendline resistance to the upside.
The Ethereum price graph shows a 5-day losing streak that is in contradiction to the recent rally. In addition, the decreasing price may reach the psychological $1,000 mark, suggesting the sellers’ effort at a further decline.
Source: TradingView.com
Ethereum reaches vital support level
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Over the past few hours, Ethereum’s price has fallen below $1,000. The Fibonacci retracement indicator suggests that there are no strong support levels for ETH that could maintain price stability. Any selling pressure could lead to a further decline of $900, or lower.
Ethereum is scheduled to receive the ‘Merge’ upgrade, a long-anticipated reformation that the global investment community has expected.
Upgrades will make the blockchain more energy efficient and may impact crypto trading.
However, the announcement of launch hasn’t had the same impact as Bitcoin on the investors. The price of Ethereum continued to retreat with Bitcoin.
ETH market capital at $127 billion according to the daily chart. Source: TradingView.com| Source: TradingView.com
The second largest cryptocurrency market capital must gain $1,100 support in order to counter the bearish views.
Ether was running in an ascending triangle from the middle of June. On June 29, Ether broke below the triangle’s lower trendline, accompanied by a surge in trading volumes that confirmed traders’ certainty about a further downturn.
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As a result, the downside goal for ETH for the third quarter, based on the ascending triangle formation, is about $835, which is almost 20% lower compared to the price on June 3.
During the Asia-Pacific trading, the price of Ethereum surpassed the previous day’s peak. But, prices plummeted to below their opening levels as soon as European trading began.
Curiously stocks also declined in an identical manner. As the world begins to see, the United States as well as Europe are entering the next phase in their global correction.
Featured Image from Crypto Basic Chart from TradingView.com