The overall downtrend started in November 2021 and continues to bring the crypto market capitalization under $1 trillion, despite last week’s biggest price gain in six months, which could bring the crypto market capitalization back to over $1 trillion. Last week, most digital currencies, including BTC and ETH, plummeted mid-week but rallied towards the end of the week. This week, the cryptocurrency market, in line with other markets, raised on Monday and the first half of Tuesday before US inflation data was released. After data was released, they also lost their value, increasing the risk on the market.
Nothing stops the bears!
Ethereum price was boosted before ‘merge,’ which was closely followed by cryptocurrency fans. The Merge upgraded the Ethurume network from the Proof-of-Work to the Proof-of-Stake method, which is expected to lead to an increase in demand for Ethereum. However, the reaction right after the Merge was contrary to expectations and caused an almost 9% price fall.
Before the recent fall on Tuesday last week, Bitcoin fell to $18,500; however, with a strong recovery, it raised above $21,500 during the weekend. After Tuesday’s fall, despite the ETH price decrease after Merge, BTC was stable at a little under 20,000. If BTC declines again, support can be found at the critical $18,500 level, while resistance may be encountered near $21,800.
While from a technical point of view, most cryptocurrencies are still holding their downtrend, if Ethereum’s price continues to decline, it may find next at $1,420. In the case of a return, Ethereum’s main resistance sits at $1,720. Breaching under this support will open the door for lower digits.