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.

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