Report Shows Ethereum Might Take Another Hit, Is It Possible?

While volatility is the core characteristic of cryptocurrency it’s not unusual for Ethereum to swing quite wildly. Since the start of the second year, Ether’s price movements were progressive. ETH steadily climbed above the $1,800 mark before the Merge.

To some reasonable extent, the positive sentiment surrounding Ethereum’s transition from PoW to PoS contributed to the surge. Many crypto-industry participants shifted their attention to the second most valuable crypto asset, according to market capital.

The trading volume of the token increased dramatically over time, as did other Ethereum derivatives.

However, Ethereum’s launch appears to be accompanied by a bearish trend. ETH moved south within hours of the Merge.

As the price fell, the increasing selling pressure gradually reduced the value. Ether fell below $1,300 over the weekend as Ether lost its sustainability at some levels.

A New Ethereum Correction Is Underway

There’s a hint for a more bearish pattern from the Ethereum technical chart. The possibility that Ethereum’s current price will drop by 25%, hovering around $1,350, is implied. ETH may fall to $1,000.

Based on the last report for the US CPI data for August, there’s an indication of a rise in the inflation rate. The response of crypto assets was not favorable.

The FOMC (the Federal Reverse System’s monetary policymaking body) has scheduled its meeting for Wednesday, 21, 2022. The entire cryptocurrency market already feels aggressive selling pressure, even before the FOMC meeting.

The analysis of the Ethereum price charts indicates a drastic drop below the token’s standard deviation. The price of Ethereum was not able to cross the threshold at $1,800.

Ether also went above its $1,340 support. The technical implications are that Ether is at risk for a downward trend if it moves below support levels.

Report Shows ETH Might Take Another Hit, Is It Possible? shows Ethereum prices below $1,350 l ETHUSDT

This is primarily because Ethereum’s deviation is below the regression channel from the lows as of June. Now, the token will be exposed to the $1250 deviation retreat. ETH may then reach the $1,000 support level.

Liquidations and ETH derivatives

Deribit’s data indicates that Ethereum has seen a significant increase in the amount of put and call contracts. The open interest is between $1,000 to $2,000 and expires at the end September. This range may indicate Ether’s possible trading value.

With Ether’s price rising, more positions have been liquidated. The entire cryptocurrency market had over $400,000,000 in liquidations as of yesterday. Coinglass data shows that Ethereum had over $58 Million in liquidated positions during the last 24 hours.

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