Ethereum (ETH) has got a dip by twenty percent during the previous week and originated an overall negative sentiment across the market. Apart from this, the prominent crypto asset could not reach the figure of $2,000. The respective bear market is expected to take it further in the future. Along with this, Ethereum’s RSI has additionally pulled back under the baseline suggesting that the bearish trend is prevalent throughout the market. CoinMarketCap’s data claims that $1,620.30 is the current point where Ethereum is trading.
Ethereum Comes under an Enormous Selling Pressure
Both Ethereum (ETH) and USD are continuously plummeting. The upcoming support is presently clustered between $1520 and $1570. The respective new support level has resulted from the convergence between the moving average of 50 days as well as 100 days. At the moment, if the respective line is disturbed, a bear formation may be established and can take Ether below $1,280. For the maintenance of the very bullish motion, the bulls will require to sustain the price of the token above the level of $1,700.
Great selling pressure has been activated by Ethereum as it is moving down with a spearheaded decline. As a considerable downfall of 21% has taken place in the price of Ethereum, it is now becoming more apparent that the bear market will spread further. In the starting phase, when Ethereum was around $1,900 or was progressing upward, a caution was sent out dealing with a liquidation that does not have the chance to occur until the liquidity levels near the $2,020 level.
Ethereum Pullback Estimated the High at $1,900
On 12th August, Ethereum’s price touched a high at $2,030 in advance of cascading down. At this time, the bears have crossed both the 8-day and 21-day moving averages, which indicates that they are currently in a stronger position. There is a chance for a pullback during the weekend. On the contrary, another conception dealing with the market opines that a probability of retracing the levels of $1450 and $1571 is also probable.
Apart from that, ETH’s Volume Profile Indicator also indicates its bear market particularly as the reinforcement of selling pressure has become obvious in the time frame of one hour. The asset’s downtrend can be overturned if the level of up to $2030 is again accessed by the bulls. A few among the prominent players within the community of cryptocurrency appear to have been unaffected by the drop that recently fell on the market.
On Friday, Arthur Hayes, the former CEO of BitMEX, stated that the present time may be utilized in shopping. The former trader from Deutsche Bank believed that the recent sell-off was not effective to invalidate the basic elements of his bullish proposition that deals with the Merge upgrade. In advance of that, he anticipated that after the Merge takes place, the prices of Ethereum may skyrocket and reach $5,000. It has not yet been determined whether or not another wave of investor enthusiasts will be seen at the brink of the respective upgrade.