Ethereum (ETH) traded in tandem with risk assets on the last trading day of the first half of the year amid ongoing concerns over rising inflation and rising interest rates. That could set the stage for more losses heading into the third quarter, some analysts said.
The price of ETH fell about 6% to $1,044 on Thursday after four days of declines. The ETH/USD pair also fell below its mid-term ascending trendline support, forming an “ascending triangle” pattern as well as a horizontal trendline resistance.
The Ethereum (ETH) price chart shows a five-day decline that contradicts the previous week’s rally. Also, falling prices could reach the psychological $1,000 mark, which suggests that sellers are working hard to fall further.
Ethereum Breaks Important Support Level
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Over the past few hours, the price of Ethereum has broken through a key support level, dropping below $1,000. The Fibonacci retracement indicator shows that ETH does not have a strong support level that can maintain price stability. Therefore, any selling pressure could lead to another drop to $900 or even lower.
Ethereum plans to undergo a “merge” upgrade, a long-awaited overhaul of the global investment community.
The upgrade aims to transform the blockchain from proof-of-work to proof-of-stake, a more energy-efficient project that may also have an impact on the transaction and crypto-transaction experience, making it more efficient.
But the announcement did not have the same impact on the investment community. The price of Ethereum continues to fall along with Bitcoin.
ETH total market cap at $127 billion on the daily chart | Source: TradingView.com
To have a chance to refute the bearish view, the second-largest cryptocurrency by market cap must recover $1,100 as support.
Ether has been operating within an ascending triangle since mid-June. On June 29, Ether broke below the lower trendline of the triangle, which was accompanied by a surge in volume, confirming traders’ certainty for a further slide.
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Therefore, the downside target for ETH in the third quarter based on the formation of the ascending triangle is around $835, which is a decrease of nearly 20% compared to the price on June 3.
During the Asia-Pacific trading session, the price of ethereum broke above the previous day’s high. However, as soon as the European session started, the price fell below the opening price.
Strangely, stocks fell in a similar fashion. It is becoming increasingly clear that Europe and the US are approaching the next phase of a global adjustment before entering a recession, which is starting to look inevitable.
Featured image from Crypto Basic, chart from TradingView.com