Although volatility is a key characteristic of the cryptocurrency, volatility is too excessive for Ethereum. Ether price action has been progressive since the beginning of the second year. ETH gradually rose above the $1800 level before the consolidation.
To some extent, the positive sentiment surrounding Ethereum’s transition from PoW to PoS contributed to the increase. As a result, many participants in the crypto industry are leaning towards the second largest crypto asset by market capitalization.
The token recorded a significant increase in its trading volume and other Ethereum derivatives during the period.
However, the launch appears to come with a downtrend for Ethereum. Just a few hours after the consolidation, ETH started a southward movement.
Increased selling pressure has gradually depleted the value as the price continues to fall. Over the past weekend, Ether fell below $1,300 as it lost sustainability on some supportive levels.
Is there another Ethereum patch in the works?
there NB For a more bearish pattern of the Ethereum technical chart. This means that another retracement of 25% from its current price, which is hovering around the $1350 area, is possible. Therefore, ETH may drop further to $1,000.
Based on the latest report of US CPI data for August, there is an indication that the inflation rate is rising. However, the response from crypto assets has been very unfavorable.
The Federal Open Market Committee (the monetary policy-making body of the Federal Reverse System) has scheduled its meeting for Wednesday, 21, 2022. But the entire cryptocurrency market is already feeling strong selling pressure ahead of the outcome of the FOMC meeting.
An analysis of the Ethereum price chart indicates a sharp drop from the token’s standard deviation. On the upside, ETH price was unable to break the barrier at $1800.
Also, the downtrend shows that Ether has breached its crucial support level of $1340. Thus, the general technical meaning is that a deviation from the support levels carries a downside risk.
This is primarily because Ethereum skews less from the regression channel from the lows from June. The token is now experiencing its third pullback of the $1,250 deviation. With that said, ETH could reach the next potential support level at $1,000.
Derivatives and liquidation of ETH
According to Deribit data, the number of Ethereum contracts launched and connection contracts has increased significantly. Open interest ranges between $1,000 and $2,000, with expiration by the end of September. The range can indicate the potential trading value of Ether.
There were more positions liquidated as the price of Ether went up. As of yesterday, the entire crypto market has recorded over $400 million in liquidations. At the time of writing, data from Coinglass shows that Ethereum is dead 58 million dollars In refinery centers during the past 24 hours.