The price of Ethereum rallied from around $1,000 to around $2,000 against the USDT before the anticipated merge. As a result, many people eagerly awaited a massive bull run. They believe the price will eventually reach $4,000 at the end of the merge. However, the price has been struggling to break above the $1800 mark over the past months.
ETH’s Week Has Not Been Good
Despite having good fundamentals, the price of ETH fell from its all-time high to around $1,000. After reaching a weekly low of $1,024, the price of ETH rallied to $2,000, but it was rejected as this area acted as resistance. Despite the strong rally, the price of ETH was rejected as it did not break through this area.
The price of ETH formed an ascending trendline on its weekly chart. It continued to bounce off this support line to maintain its bullish run. However, after a while, it broke this trendline and created mixed feelings in the investors’ minds.
The price of ETH is currently trading above the key support level of $1,400. If it breaks below this area, it could cause the price to fall to its weekly low. However, a break above this level would allow investors to take advantage of the current rally. Hence, moving to a region of around $1,630. A break below $1,400 would mean retesting the key weekly support at lower regions of $1,200 and $1,000.
If the price of ETH breaks above this level, it could trigger a strong rally and move to a region of around $1,700. A close above this level would boost the bullish trend and allow the price to test the region of $1,900 and $2,000.
ETH Price Action Weakening
The daily chart of ETH shows that the price action has been weakening as the pair breaks below the declining trend line and begins to fall towards the next support area. That is an ideal time for bulls to enter the market as the price continues to decrease.
The daily chart shows that a break below the declining trend line and a close below the $1,400 level would trigger a move to the next support area, around $1,250-$1420, which is a good zone for buying. A break below this region would make it harder for the price to continue its upward trend.
The price of ETH is below the 200 and 50 exponential moving averages, which acts as resistance for the pair. On the other hand, the price of $2,000 and $1,620 implies resistance at the levels above.
For the price to continue its upward trend, it needs to break through the 50 EMA and reach the $2,000 level. On the other hand, if it fails to reclaim the support at the $1,400 level, it might face a challenge at the next support area.
Is Cardano Headed for a Crash?
The recent performance of the cryptocurrency market has caused investors to worry that a potential crash might happen. The value of Cardano has dropped from its high of around $0.5043 to around $0.4574. That is a significant discount, meaning the coin is worth less than it was at its peak. Despite this, its market value has remained relatively stable.
The price of Cardano has been trying to break out from the 78.60 Fib level, but the bulls have not been able to gain enough aggressiveness. That makes the situation very volatile.
The inability to break out from this level suggests that the market is already processing a larger decline. According to Coingecko, the value of the top 10 cryptocurrencies has dropped by around 10% in just a week.
Broader Market Seen To Experience More Pain
The link between the leading cryptocurrencies and Cardano could push the latter’s price down to the bottom. Bitcoin’s decline is expected to continue due to the release of the latest inflation report and the expectation of a 1% increase in interest rates.
Despite the positive news about the Vasil upgrade, the market may not be able to prevent a broad decline. If Cardano’s future is bright, the entire crypto market should perform better. However, this is very unlikely since Bitcoin follows the S&P 500 Index.
Cardano investors should be ready for another crash if the market continues to decline. However, if the investors’ sentiment remains resilient, a catastrophic event such as this can be reversed. Due to the upcoming upgrade, the team should release additional details about the project in the next couple of days.