The second largest cryptocurrency, ETH is steady as it holds support at $1,500, but analysts see a recovery unlikely before the scheduled Shanghai hard fork. The Ethereum price stood at $1,555 at the time of writing amid a -1% change in 24 hours.
investors who Locked your ETH in the Beacon Chain smart contract The token is expected to be withdrawn when the Shanghai hard fork arrives in early April to help the network transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus algorithm.
Analysts are conflicted on the impact of the much-anticipated upgrade, with some saying it will send Ethereum’s price above $2,000, while others expect the price to slide further as stakeholders gain access to it. ETH locked in smart contract and prefers to sell,
Ethereum Price Plunges Above $1,500 As Recession Fears Rise
The cryptocurrency market has maintained its position on the very edge of a cliff for the past few weeks, as Federal Reserve Chairman Jerome Powell testified before the Senate Banking Committee on Tuesday.
Citing extremely unfavorable economic data since the last review in early February, Powell didn’t mince his words when he said interest rate hikes were likely and by a larger margin than market watchers expected.
The cryptocurrency market is expected to feel the pinch with bearish forces likely to be on the offensive, as investors gravitate towards fixed income products and a stronger US dollar. Powell’s comments have been interpreted as a warning of a recession — if it isn’t already here.
Ethereum price and the crypto market should also face a tougher stance from US regulatory agencies, who have vowed to increase oversight of the industry following the sudden collapse of the FTX exchange in November.
US-based crypto firms are feeling the pressure – made worse by the recent revelation that Silvergate, a crypto-friendly bank, is re-evaluating its vulnerable capital position in order to survive.
Dissecting the Ethereum Price Short-Term Technical Outlook
Besides holding Ethereum price above $1,500, the smart contract coin held on to the support provided by the 200-day exponential moving average (EMA) at $1,546 on the daily chart.
However, a lack of liquidity means that ETH price lacks the expected momentum to fight off the immediate seller rush from $1,569, as reinforced by the 50-day EMA (the line in red). The Money Flow Index (MFI) position below the descending trend line means that the bears are holding the reins.
The MFI is a momentum indicator closely related to the Relative Strength Index (RSI) as it tracks the flow of money in an asset like ETH over a given period of time by incorporating volume and not price.
The oversold level would be expected below 20.00, so Ethereum price could decline further before a trend reversal occurs. Traders looking to book long positions in ETH may want to wait until the MFI breaks above the trend line as shown on the chart.
Not only that, as Ethereum price faced higher pressure from the Sell signal of the Moving Average Convergence Divergence (MACD) indicator. This call for traders to offload ETH in early February appeared to reflect a recovery in crypto markets from January’s aggressive bullish pressure.
A recent drop below the 0.00 average line of the MACD signals the bears in the upper hand. In that case, the support at the 200-day EMA must be protected at all costs, otherwise, we could see Ethereum price drop to $1,400.
According to blockchain data presented by IntoTheBlock, approximately 18.69 million ETH addresses are currently in a loss state. This indicates that if these investors were to sell their ETH at the current market price, they would experience a loss compared to their initial purchase price.
Retail investors can sell their crypto holdings to protect their capital and invest in better performing tokens even at a loss. The available support areas (green circles) for Ethereum price are weak, with the range between $1,600 and $1,647 a strong hurdle to overcome.
Addresses in the money with unrealized gains are represented by small green circles on the chart, and if the selling pressure increases, Ethereum price could decline further to the downstream levels of $1,400 and $1,338, respectively.
The larger circle between $1,600 and $1,647 is where sellers are most concentrated and where the bulls are likely to face resistance in their upward push. If the price of Ethereum rises, investors can sell at their breakeven point, potentially slowing or reversing the uptrend.
However, if the price breaks above the $1,600 to $1,647 resistance area, it could continue higher towards $1,800 and above. Meanwhile, key levels for traders to watch above are seller congestion at $1,600, $1,800, and eventually $2,000 in the near term.
ethereum options to buy today
If you are looking for ETH as well as other high-potential crypto projects, we review the Top 15 Cryptocurrencies for 2023, as analyzed. crypto news Industry Talk Team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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