Ethereum Crashes 14% To $1263: Would ETH 2.0 Change The Trend?

The second-largest cryptocurrency by market cap, Ethereum ETH/USD has stumbled from its $1800 levels to a 7-day low of $1322. With a drop of over $200, ETH has gained over 40% in its trading volume in the past 24 hours, as the bears seem to have started accumulating the oversold coin. 

Source: TradingView ETH/USDT

With the successful merge of the Ropsten network, the Ethereum 2.0 went live on the testnet a few days ago. Despite the technical upgrades, the native token has plunged into a bearish trail while its underlying ecosystem of dApps including Uniswap, Compound and Oasis have gained users by 17%, 144% and 200%, respectively, according to Dapp radar

Is Grass Greener Ahead? Indicators suggest a 38.2% retracement from a 4-week low could be possible. 

By breaking support levels of $1572 and $1484, ETH has entered a downtrend at $1,120 being the next support level. 

Since November 2018, this is the first time ETH indicators have made it to the ‘oversold’ league; previously ETH regained a 400% price pump after hitting its YTD lows. 

The drop in ETH price has pushed weekly 200 EMA below it, risking long-term holders' positions and losing its key support levels. If the weekly close falls below this EMA, the market is likely to continue its downward trend in the next week.

Read Next: More Pain Ahead For Ethereum? Celsius Crashes 55% As It Halts Withdrawals Over 'Extreme Market Conditions'

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