Ethereum (ETH) traded alongside risky assets in the last session of the first half of the year, due to persistent fears of rising inflation and higher interest rates. Some analysts say this could set the stage for further declines as the third quarter approaches.
After a four-day losing streak, ETH price fell nearly 6 percent to $1,044 on Thursday. ETH/USD also broke below the temporary ascending trendline support, creating an “ascending triangle” pattern in conjunction with the horizontal trendline resistance to the upside.
Ethereum (ETH) price chart displays a five-day losing streak that contrasts with the bullish rally from the previous week. Additionally, the declining price may reach the psychological level of $1,000, which indicates the sellers’ efforts for a further decline.
Ethereum breaches vital support level
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In the past several hours, the price of Ethereum broke through a crucial support level, falling below $1,000. The Fibonacci retracement indicator indicates that there are no strong support levels for ETH that could keep the price stable. Thus, any selling pressure could lead to another drop to $900 or even lower.
Ethereum is set to receive a “merger” upgrade, a long-awaited overhaul that the global investment community has been waiting for.
The upgrade aims to transform the blockchain from Proof of Work to Proof of Stake, a vastly more energy efficient project that could also have an impact on transactions and crypto trading experiences, making it more efficient.
But the launch announcement did not have the same effect on the investment community. Ethereum price continues to fall along with Bitcoin.
ETH total market cap at $127 billion on the daily chart | Source: TradingView.com
For a chance to refute the bearish view, the second largest cryptocurrency by market capitalization should reclaim $1,100 as support.
Since mid-June, Ether has been running inside an ascending triangle. On June 29, Ether broke below the lower trend line of the triangle, accompanied by a spike in trading volumes which confirmed traders’ confidence for a further decline.
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As a result, the negative target for ETH for the third quarter, based on the ascending triangle formation, is around $835, which is nearly 20% lower compared to the June 3 price.
During Asia Pacific trading, the price of Ethereum surpassed the peak of the previous day. However, as soon as the European session started, the price fell below the opening level.
Oddly enough, stocks fell in a similar way. It is becoming increasingly clear that Europe and the United States are approaching the next stage of a global correction before entering a recession, which is beginning to look inevitable.
Featured image from Crypto Basic, chart from TradingView.com