Ethereum, the world’s second-largest cryptocurrency, has seen its recent rally come to a screeching halt when Ethereum (ETH) wiped out all its gains in the wake of the highly-anticipated Shanghai upgrade.
While many had high hopes for this upgrade, which promised to improve network speed and scalability, the market seems to have reacted negatively to the news.
This sudden drop in price has left investors wondering what the future holds for Ethereum and whether or not it can recover from this setback.
Crypto Market Recession Drags Ethereum Lower
At the time of writing, the price of Ethereum sits at $1,860.72 according to CoinMarketCapbut the last 24 hours have not been kind to the cryptocurrency as it has seen a 4.05% drop.
The past week has been even more unforgiving, with Ethereum seeing a significant drop of 11.02%. The once-flying cryptocurrency is now wondering what caused this downturn and whether it can regain its vigor in the days and weeks ahead.
Over the past few days, the cryptocurrency markets have been showing signs of frailtylargely due to concerns about persistently high inflation, fluctuations in the stock market, and the looming threat of an economic downturn, all of which have contributed to dragging prices down.
Against this backdrop, Ethereum has been experiencing a steady decline since Tuesday, a trend that has been reflected in the broader cryptocurrency market.
Bitcoin, for example, has been down more than 3% in the last 24 hours alone and is down more than 10% from its recent peak above $30,000, currently trading at around $27,346.
Fake ETH Price Breakout of Local Support Level: Recovery Possible?
Despite a recent drop, the ETH price experienced a fake break up local support level at $1,896. However, a daily close far from the $1,900 mark may trigger a bounce towards the $1,920-$1,930 zone tomorrow.
Ethereum (ETH) market cap at $223 billion on the daily chart at TradingView.com
In a longer time frame, the situation for Ethereum remains bearish, with the bar about to close below yesterday’s low at $1,913.60. If this happens, there is a high probability of a further drop towards the next significant support level at $1,846, a scenario that may continue until the end of the week.
Looking ahead from a medium-term perspective, the Ethereum price has pulled back to the middle of a wide channel, with sellers taking control as the price holds below the crucial $2,000 mark.
This indicates that the cryptocurrency may face continued pressure and struggle to regain its bullish momentum.
–