Ethereum now has a lower hold than it used to. This is in addition to the decline of bitcoin below $20,000. Ethereum continues to fight for the support level where the bulls have some hope. It is possible that Ethereum will soon reach the crucial $1,000 level, given the market’s current movement.
Ethereum drops below $1,100
Ethereum’s recent holdings above $1,100 over the last week meant there was some hope of a strong run that would see it test the $1,500 resistance. This would last for just over $1,200 before Ethereum lost momentum and began a new decline.
Similar Reading: Wall Street Investors Are Expecting Bitcoin to Hit $10,000, But Is It Possible?| Wall Street Investors Expect Bitcoin To Hit $10,000, Is This Possible?
The price of Ethereum has fallen sharply since the beginning of the week. It had already broken the $1,100 support level. It is currently below the support level and pushing on its current levels.
With the digital asset continuing to skew toward 100% sell, it is possible that there won’t be much support for ETH. The reason is that the sell-offs are not over. This means bears are still able to lower the price for ETH.
ETH drops below $1,100. Source: TradingView.com ETHUSD| Source: ETHUSD on TradingView.com
Ethereum now falls below the 20-day moving median, a measure that was supposed to set it up for a bullish short-term. The pulldown instead has brought $1,050 as the next significant support level. This is a point that the digital asset holds above, but it remains difficult to climb.
Related Reading| Ethereum Liquidations Ramp Up As Price Struggles To Hold $1,100
Most of Ethereum’s gains had actually come from the anticipation of the Merge which is expected to happen sometime this year. It seems like it is becoming a “buy the rumor, sell the news” situation. All of the ETH that has been locked up will be released when the merger happens. The digital asset will see greater recovery as the merger draws nearer.
The market may not have reached its bottom yet, so it’s possible Ethereum is still in decline. Going by historical data shows that at least an 80% decline is expected before the bottom is in, and so far, ETH’s price is down 78% from its all-time high. Before the next bull market begins, it is predicted that it will drop to $500.
Featured image by Anioma Press. Charts provided by TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…