Ethereum is the world's second largest cryptocurrency, and its recent rise has come to a sudden halt as Ethereum (ETH) has recouped all its gains after the highly anticipated Shanghai upgrade.Although many people have high hopes for this upgrade and promise to improve network speed and scalability, the market seems to have reacted negatively to the news
Ethereum is the world's second largest cryptocurrency, and its recent rise has come to a sudden halt as Ethereum (ETH) has recouped all its gains after the highly anticipated Shanghai upgrade.
Although many people have high hopes for this upgrade and promise to improve network speed and scalability, the market seems to have reacted negatively to the news.
The sudden drop in prices has made investors wonder what the future of Ethereum will be like and whether it can recover from this setback.
The downturn in the encryption market has dragged down Ethereum
At the time of writing this article, according to CoinMarketCap data, the price of Ethereum is $1860.72, but it has been unfriendly to cryptocurrencies over the past 24 hours as it has fallen by 4.05%.
The past week has been even more ruthless, with Ethereum experiencing a significant decline of 11.02%. The once thriving cryptocurrency now has to doubt what caused this downturn and whether it can recover its vitality in the coming days and weeks.
In recent days, the cryptocurrency market has shown signs of fragility, mainly due to concerns about sustained high inflation, stock market volatility, and the imminent threat of economic recession, all of which have dragged down prices.
Against this backdrop, Ethereum has been steadily declining since Tuesday, a trend that has been reflected in the broader cryptocurrency market.
For example, Bitcoin has fallen by more than 3% in the past 24 hours alone, and has dropped by more than 10% from its recent peak of over $30000. The current trading price is only around $27346.
ETH Price Error Breaks Local Support Level: Potential Rebound?
Despite recent declines, ETH's price mistakenly exceeded the local support level of $1896. However, the daily closing price moving away from the $1900 level may trigger a rebound to the $1920-1930 range tomorrow.
In a larger time frame, Ethereum's situation remains bearish, and the bar is about to close below yesterday's low of $1913.60. If this situation occurs, it is highly likely to further decline to the next important support level of $1846, which may continue until the end of this week.
In the medium term, the price of Ethereum has fallen back to the middle of the wide channel, with sellers dominating as the price remains below the critical $2000 threshold.
This indicates that the cryptocurrency may face sustained pressure and find it difficult to recover its bullish outlook.
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