The second biggest cryptocurrency Ethereum values tanked in its greatest fall over the last weekend after the Fed Jackson Hole meeting. When report last came in the number two crypto asset was changing hands at $1,451 down by 7% with a market cap of $177 billion.
Evaluating the data from IntoTheBlock, popular trader Ali Martinez explains that the Ethereum Values price correction is happening under two important supply zones. One is at $1,475, where 585K addresses bought 2.81 million $ETH, and the second at $1,560, where 526K addresses own 3.44 million #ETH.The only support level is $1,335, where 412K addresses purchased 2.2 million #ETH.
Elaborating further Martinez said that the growth of Ethereum network has been the minimum in the last two years. The network’s growth has never been so low ever and is a sure sign that there is a strong bearish momentum. The last time when the growth of daily new $ETH addresses was 49,700 was back in March 2020. The last time when the steady fall in new addresses created on the Ethereum platform had been followed by a period of steep price correction.
Ethereum Values Corrects Post Merge Upgrade
Ethereum values was at the rock bottom of $1000 in June. The month of July and August saw ETH make strong recovery and made up 90% of the losses. Thus, ETH saw a strong 25% retracement from the peak and is currently trading under $1,450 levels.
It is indicative of the fact that global macro factors have been pulling down the optimism surrounding the Ethereum Merge. In a note last Friday, analysts at Bitfinex said:
“Ethereum’s drop ahead of the impending Merge is also of note as bearish sentiment appears to be taking hold across all so-called risk assets. The volatility that has become so characteristic of the digital token space shows no signs of abating.”
All eyes will be on the $1,335 level which has the last major supply zone. Falling under it could mean even greater correction.