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Reports Show Ethereum Could Get Another Hit, Is It Possible?

Volatility is a core attribute of cryptocurrencies, but Ethereum’s swing is pretty excessive. Ether’s price action has been gradual since the beginning of his second year. ETH gradually surged above the $1,800 level before the merger.

Positive sentiment around Ethereum’s PoW to PoS transition contributed to the surge to some extent. As a result, some participants in the cryptocurrency industry leaned towards his second-largest cryptocurrency by market capitalization.

The token registered a significant increase in trading volume and other Ethereum derivatives during that period.

However, the launch appears to be accompanied by a bearish trend for Ethereum. Just hours after the merger, ETH started moving south.

As the selling pressure increased, the price continued to fall and gradually became worthless. Over the course of last weekend, Ethereum fell below $1,300 as it lost sustainability at some support levels.

Another Ethereum fix in progress?

Ethereum’s technical charts offer a hint of a more bearish pattern. This implies a further 25% correction from the current price, hovering around $1,350. Therefore, ETH could fall further to $1,000.

Based on the latest report on US CPI data for August, it points to an increase in inflation. However, the reaction from crypto assets has been very unfavorable.

The FOMC (the monetary policy-making body of the Federal Reverse System) is scheduled to meet on Wednesday 21st, 2022.

An analysis of the Ethereum price chart shows that the token is well below its standard deviation. On the high side, ETH price failed to break the hurdle in the $1,800 area.

The downtrend also shows that Ether broke above the critical support of $1,340. So the overall technical implication is that any deviation from the support level carries downtrend risk.

Ethereum Price Movement Below $1,350 l ETHUSDT on TradingView.com

This is mainly due to Ethereum’s deviation below the regression channel from the June low. The token is now exposed to his third deviation retreat of $1,250. This could push ETH to the next possible support level of $1,000.

ETH Derivatives and Clearing

Data from Deribit shows that the number of put and call contracts on Ethereum has skyrocketed. Open interest ranges from $1,000 to $2,000 and expires by the end of September. This range could indicate the possible trading value of Ether.

As the price of Ether rises, more positions are being liquidated. As of yesterday, he has recorded over $400 million in liquidations across crypto markets. At the time of writing, according to Coinglass data, Ethereum has liquidated more than $58 million in positions in the last 24 hours.

Reports Show Ethereum Could Get Another Hit, Is It Possible?

Source link Reports Show Ethereum Could Get Another Hit, Is It Possible?

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