The price of ethereum (ETH), the second largest cryptocurrency, is plunging days after the highly anticipated Shanghai update.
Although the cryptocurrency and trading community eagerly awaited the upgrade, prices are moving lower and below the $2,000 level even after the upgrade improved network performance.
The crypto market remains bearish
Ethereum is currently trading at $1,848.00 and is down 4% in the last 24 hours.
Since last week, ETH, like the broader market, has been moving lower. The coin is now down 11% from recent highs recorded after the Shanghai update, canceling out the initial optimism traders had about the second most valuable cryptocurrency.
At this rate, users are questioning the strength of the uptrend and whether the bulls will return, pushing prices higher.
Reading the overall performance of the crypto market, asset prices are fragile. This could be partly due to fears that the economy will worsen. Also, stock market fluctuations and high inflation rate do not help the situation.
Since the beginning of this week, the bears have been in charge, suppressing gains and putting downward pressure on crypto asset prices. ETH has not been an exception despite outperforming bitcoin (BTC) prices.
At the time of writing, bitcoin is trading at $27,261.98, a 12% drop from its recent high of $31,000.
Ethereum traders expect a bounce
ETH experienced a false breakout of the $1,896 psychological support level. If the bulls intensify, the coin could rally to a zone between $1,920 and $1,930.
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Still, chartists remain bearish on ETH prices. If prices sustain below $1913, the bears could continue to push the coin to new lows.
It is despite ETH prices consolidating within a wide channel with bears frequently emerging on top. The failure of the bulls to outperform the bears means that prices could stay below $2,000 for an extended period, a handicap for confident bulls.
