The cryptocurrency market is still stunned by last week’s precipitous decline. Ether lost around 45 percent in 10 days.
The four-day chart shows that the Ethereum price (ETH) has returned to its historical RSI Low of $81.
The recent cryptocurrency sell-off saw ETH value fall below key levels. Currently, ETH is trading in triple digits.
Coingecko’s data indicates that ETH was trading at $1.008 as of today, a decline of approximately 40% in the last week.
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Get Ether as Low As $997
Etherscan shows that ETH currently sells at $997.61. This is a decline of around 9 percent over 24 hours. Ethereum is expecting to suffer greater losses if this support level breaches.
There are few major buyers and the bears have complete control over the market. In the bearish scenario, if sellers force the price below $900, the probable demand zone is between $700 and $900. ETH might enter the accumulation phase once this price is reached.
At the moment, worries about a recession, high interest rates, inflation and wobbly stock prices are driving negative sentiment in cryptocurrency and stock markets.
ETH market capital at $122 billion according to the daily chart. Source: TradingView.com| Source: TradingView.com
A Shot At $1,700 In A Bullish Scenario
In a bullish scenario, ETH would likely approach $1,700 for static resistance. The market’s purchasing power will determine if ETH can overcome the barrier.
This possibility is unlikely, given the fact that investors are putting high-risk assets under a lot of scrutiny in light of current macroeconomic conditions.
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.
The improvement will eliminate the dependence on Proof-of-work (PoW), as well as the Merge scaling solution which has been in development since six years.
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Heavy Market Liquidation Brings Down Ethereum
The current decline in ETH, second-largest cryptocurrency after bitcoin, can be attributed to Three Arrows Capital’s liquidation of a substantial investment. A substantial amount of ETH was unloaded onto the open market after this liquidation.
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 predict that Bitcoin and Ether will drop as much as 85 percent during bear market conditions.
Due to the impossibility of market prediction and timing, there is never an “ideal” time to buy in cryptocurrencies. According to analysts, this could still be an ideal time to get into the market, as prices are currently low.
Featured Image from Arch20. Chart from TradingView.com