Ethereum (ETH) Price Is Down And It Is Heading To 1,200$
✍️ 19 September, 2022 - 17:49 👤 Editor: Jakub Motyka
- Ether is leading losses among major cryptocurrencies with a double-digit dip in the past 24 hours.
- The technical indicators show that the price could reach as low as $1,200.
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Ethereum is on track to $1,200, having lost support at $1,433. Its native token has tanked from a pre-merge price of $1,500 to $1,293 at the time of writing. ETH is currently leading losses in the crypto space. It has dipped 11% in the past 24 hours to consolidate weekly losses at 25%.
While Ethereum could be on the verge of dropping into oblivion, it is not the only token on the red. Bitcoin is down 7% in the past day and 15% in the past week, currently exchanging for $18,469. Altcoins are no different; Cardano, Polygon, and Polkadot have seen more than 10% losses in the same period.
ETH Technical Indicators Are Flashing Red Signals
Technically, ETH is looking exceedingly bearish. The token is trading below the 20-day and 50-day moving averages. Key indicators, MACD and RSI, are both in red. With bearish histograms, the MACD line has crossed from above to below the signal line. The Relative Strength Index is at 33, slightly above the oversold zone, meaning ETH can go even lower.
Currently, ETH has retested the $1274 support level. If the level does not hold, the price could go lower, and the focus will shift to $1,020 as the longer-term support. Conversely, $1,594 and $1,710 are the crucial resistance levels to the upside.
Ethereum’s dwindling fortunes come hotly on the heels of the just completed PoS merge. While the market was anticipating a price pump, the impact of the Merge was already priced in. Security challenges are also at play in the ongoing correction.
Reports have surfaced about replay attacks targeting Ethereum and the forked EthereumPoW platforms. The exploit happened at the Omni bridge of the PoW chain. The event has tainted the reputation of a once fool-proof blockchain network.
More Volatility Amid Looming Fed Rates Hikes
On the broader market outlook, the road to $1,200 is certainly inevitable for ETH. The sentiment is partly due to an expected rate hike when the US Federal Reserve meets this week. The Federal Open Market Committee is convening on September 20-21.
The market is already bracing for a 0.75-1 basis point interest rate increase amid high inflation. A high borrowing rate could push investors away from riskier assets like cryptocurrencies and could even lower the market cap. The current crypto market valuation has dropped 7% in the past day to $901.57 billion.
More volatility is also expected as the Bank of England and Bank of Japan move to make monetary decisions this week. If both banks equally hike interest rates, it could dampen the crypto sentiment further and force weakness on Ethereum.
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- ethereum-eth-coin: Unsplash