While volatility is a key feature of cryptocurrencies, swings are extreme for Ethereum. The price movement for Ether has been progressive since the beginning of the second half of the year. ETH slowly rose above $1,800 before the merge.
To some reasonable extent, the positive sentiment surrounding Ethereum’s transition from PoW to PoS contributed to the increase. As a result, several participants in the crypto industry have turned to the second largest crypto asset by market cap.
During this period the token recorded a huge increase in its trading volume and other Ethereum derivatives.
However, the launch seems to bring a bearish trend for Ethereum. Just a few hours after the consolidation, ETH started a southward movement.
Increasing selling pressure gradually reduces prices as prices continue to fall. Last weekend, Ether dropped below $1,300 as it lost stability at some supportive levels.
Another Ethereum fix underway?
have a hints For more bearish patterns from Ethereum technical charts. This implies the possibility of another correction of 25% from its current price, which remains close to the $1,350 region. So, ETH may fall further to $1,000.
Based on the last report of US CPI data for August, there are signs of an increase in the inflation rate. However, the reaction from crypto assets has been very unfavorable.
The FOMC (Monetary Policymaking Body of the Federal Reserve System) has scheduled its meeting for Wednesday, 21, 2022. But the entire crypto market is already feeling aggressive selling pressure ahead of the FOMC meeting outcome.
Analysis of the Ethereum price chart indicates a drastic drop below the token’s value deviation. On the upside, the price of ETH failed to cross the barrier in the $1,800 region.
Also, the downtrend shows that Ether has crossed the critical support of $1,340. Thus, the overall technical implication is that deviations from support levels result in downside risk.
This is primarily because Ethereum’s divergence is below the regression channel from the June low. The token is now open on a third divergence retracement of $1,250. With this, ETH could hit the next potential support level of $1,000.
ETH Derivatives and Liquidation
According to data from Deribit, the number of Ethereum put and call contracts has skyrocketed. Its open interest ranges between $1,000 and $2,000, expiring at the end of September. The range may indicate the potential trading value of Ether.
As the price of Ether rose, more liquidated positions occurred. As of yesterday, the entire crypto market recorded over $400 million in liquidations. At the time of writing, data from Coinglass shows that Ethereum is dead $58 million Liquidated positions in the last 24 hours
