Ethereum suffered from the pressure of the wider crypto market late Friday. Prices traded below $1,800 and prices fell for the fourth straight session.
Despite these small losses, bearish momentum prevented ETH’s breaking the $1,800 barrier within the past seven days.
After a sluggish pace in April, inflation surged again in May, which might have a negative influence on cryptocurrency markets already suffering from the Federal Reserve’s stricter monetary policies.
At the time of writing, ETH/USD has fallen to an intraday low of $1,761, less than 24 hours after reaching a high of $1,812.90. According to data from CoinMarketCap, the price of Ethereum has declined by more than 7 percent during the past 24 hours.
Recommended Reading: Ethereum Market Cap Reduced by More Than $100 Billion in the Last Month| Ethereum Market Cap Cut By Over $100 Billion Last Month
Since last month, Ethereum’s price continued its slide under the resistance dynamic of the trendline.
Mid-May saw an aggressive selling of the ETH/USDT pair that surpassed January’s low of $2170.
The selling pressure dropped in response to increasing instability on the crypto market. This led to a steady but slow decline.
Ethereum Managed to Pull Up 0.33%
In spite of Ethereum’s intraday low of $1,761, a review of the previous week reveals a 0.33 percent price growth.
This allowed ETH to stay above $1,750, despite bear attempts to decrease it.
ETH Total Market Cap at $201 Billion on Daily Chart | Source: TradingView.com
Others cryptocurrencies suffered a similar blow: Solana lost 9%, Avalanche fell 10%, and Cardano has fallen by over 10% within the last 24 hours.
Since the first half of last month the price of ETH has decreased in response to the descending trendline and has reached a new low of $1718. Multiple retests at this resistance show its impact on market participants.
Suggested reading: Dogecoin Market Capital fell by $6-B last month. Will bearish pressure continue to pull down?| Dogecoin Market Cap Shed $6-B Last Month – Will Bearish Pressure Continue The Pulldown?
Still Retaining Strength In Terms Of Market Cap
Ethereum remains the month’s second-largest digital asset by market capitalization. ETH was valued at approximately $235 Billion in market capitalization as of May.
The decline in Ethereum’s market capitalization can be traced to a broader selloff of digital assets over the past few weeks.
Inflation has forced households to become more cautious with spending, particularly those on lower incomes, who tend to spend less on basic necessities like food and utilities.
According to economists, a tighter budget could reduce demand for digital assets.
Featured image taken from The VR Soldier Chart from TradingView.com