Late Friday, Ethereum once again felt the tightness of the broader crypto market, trading below $1800, as prices fell for the fourth consecutive session.
Despite these small losses, bearish momentum has prevented ETH from breaching the $1,800 barrier in the past seven days.
After a slow pace in April, inflation rose again in May, which could have a negative impact on the cryptocurrency markets already suffering from the tighter monetary policies of the Federal Reserve.
At the time of writing, ETH/USD is down to an intraday low of $1,761, less than 24 hours after hitting a high of $1,812.90. According to data from CoinMarketCap, the price of Ethereum has fallen by more than 7 percent in the past 24 hours.
Ethereum price has continued to fall below the dynamic resistance of the descending trendline since last month.
The intense selling of ETH/USDT seen during mid-May has broken the January low of $2,170.
However, in the face of increasing instability in the cryptocurrency market, selling pressure has eased, leading to a slow but steady decline.
Ethereum can still withdraw 0.33%
Although the price of Ethereum fell on the day at $1,761, a review of the previous week revealed a price growth of 0.33 percent.
This allowed ETH to stay above the $1750 level, despite the bears’ attempts to lower the price.
ETH total market cap at $201 billion on the daily chart | Source: TradingView.com
Other cryptocurrencies have also been hit hard, including Solana (loss of 9%), Avalanche (down 10%), and Cardano, which is down more than 10% in the past 24 hours.
Since the first half of last month, ETH price has declined in response to the descending trendline and reached a new low of $1,718. Multiple retests of this resistance indicate its significant impact on market players.
It still retains strength in terms of market value
Ethereum remains the second largest digital asset of the month by market capitalization. In May, ETH had a market capitalization of around $235 billion.
The drop in the market value of Ethereum can be traced back to the massive sell-off of digital assets over the past few weeks.
Meanwhile, inflation is pushing families to be more prudent in managing spending, especially those on lower incomes who spend a larger portion of their budget on basics, such as food and utilities bills.
Economists believe that tighter budgets could curb demand for digital assets.
Featured image from The VR Soldier, chart from TradingView.com