Ethereum Sheds 20% in the Last Week; Will it Rise or Perish

Ethereum, the world’s second-largest cryptocurrency after Bitcoin, suffered a huge downfall after the market crash earlier this year. The prices in June were the lowest in a few years. However, Ethereum entered a price rally during its consolidation and tested the $2,000 mark, but the failure to break through that figure reintroduced the bearish trend. The last week saw Ethereum remain bearish for seven consecutive days, losing one-fifth of the previous two months’ gains. Newsbtc reports that Ethereum’s price fell by another 4% during the last 24 hours, resulting in an increased sell-off as investors fear a market downfall soon. A breakthrough from the present support level will shoot up Ethereum’s price while the opposite will lead to a new low.

How Ethereum faired in the last 24 hours

The Economic Times reports that Ethereum (ETH) was trading at $1,567 at the time of the report. Ethereum’s price graph has been on one-way traffic after the fall from the $2,000 mark. The present resistance is $1,700, and breaking above this figure will propel the price to $1,900. However, the crypto market is highly volatile, and Ethereum’s future is unpredictable. The Economic Times reports that Ethereum is trading close to its immediate support level; a fall below the support level might send the price into a downward spiral. Investors await the next month’s merge to benefit from the price hike; analysts believe Ethereum’s future post the merge cannot be predicted, and the investors should wait to witness the merger’s impact on the currency’s market. 

Technical factors

The Ethereum’s present market trend indicates a sell-off, and the Relative Strength Index remained below the half-line suggesting an excess of sellers. Ethereum’s price was below the 20-SMA; it represents sellers’ dominance over the present market. Investors lost faith in the cryptocurrency after its downward turn and were urged to start selling.