Ethereum has now lost its grip on an important level. This drop comes on the heels of Bitcoin’s drop, which has now fallen below $20,000. However, for Ethereum, the fight continues to hold at one point where the bulls still see some hope. However, with the way the market is moving, it may not be long before Ethereum tests the critical $1,000 support level.
Ethereum drops below $1,100
As for Ethereum, stability above $1,100 for the past week means that there is still hope for a good rally that could lead to a retest of the $1,500 resistance. But this will only last a bit above $1200 before losing steam and turning back down.
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With the opening of the new week, the drop in prices affected Ethereum hard and the price easily breached the $1100 support level. Now that the price has settled below this point, it continues to press any support that is created below it.
Given that the digital asset continues to drift towards 100% selling, there may not be much support for an ETH formation. This is because the sell-offs have refused to reach the point of exhaustion. This means that the bears can still lower the price of ETH.
ETH falls below $1,100 | Source: ETHUSD on TradingView.com
Ethereum has now fallen below the 20-day moving average, a measure that has been defining the bullish short-term digital asset. Instead, a pullback down has now taken the next major support level to $1050, a point where the digital asset continues to hold above but still difficult to climb from here.
Related reading | Ethereum liquidations escalate as prices struggle to hold $1,100
Most of Ethereum’s gains actually came from the anticipation of a merger that is expected to happen sometime this year. However, he seems to be turning to buying this rumor and selling the news case since all ETH locked in will be unlocked when the merger takes place. However, as the consolidation process nears, the digital asset is expected to see further recovery.
As for where the decline ends, it is possible that Ethereum may not have seen the bottom of the market. Historical data indicates that a drop of at least 80% is expected before the bottom reaches, and so far, the price of ETH is down 78% from its all-time high. It is expected to decline to as low as $500 before the next bull market resumes.
Featured image from Anioma Press, charts from TradingView.com
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