Cryptocurrency, Ethereum (ETH), News, Price Analysis

Ethereum (ETH) Scrambles to Secure Footing Following Selling Spree

  • ETH price seems ready for downtrends after losing nearly 15% within the past day.
  • The downswing might extend until Ethereum secures a dependable foothold at $1,284.
  • ETH should ensure a swing peak beyond $1,700 to invalidate the bearish narrative.

Ethereum, the leading altcoin, undergoes a selling spree following a week-long, immense surge that saw the alt gaining over 60%. Consequently, Ethereum is now battling to secure dependable support barriers. That comes as the overall crypto spectrum resorted to downtrends from the weekend.

ETH On Downside Spiral

Ethereum has erased approximately 18% from the upside it recorded within the past four days. That saw the alternative token fill the FVG (Fair Value Gap) or price inefficiencies prevailing up to the $1,383 mark. The ongoing downtrend will likely discover a temporary footing at $1,340. However, breaching this mark will mean declining to the previously formed $1,284 range high.

A conservative viewpoint suggests Ethereum will likely lose another 10% in the coming sessions. Meanwhile, weakness around the range peak might lead to steeper plunges, taking ETH to the range’s midpoint at $1,080.

This mark will likely absorb most selling momentum and offer sidelined buyers an opportunity to join. However, some scenarios could drive Ethereum beneath the swing lows created at $994.

Meanwhile, the retracement will enable market makers to gather liquidity beneath equal lows, which might catalyze trend reversals for the token. Nevertheless, market makers will likely be highly volatile as the Fed Reserve prepares for another rate hike on 27 July.

Most analysts trust the Fed will adopt a hawkish stance following June’s inflation numbers, forecasting a 75bp hike. Moreover, the Federal Reserve might resort to 100bp to contain the escalating inflation. A rate hike will dent sentiment in risk assets. That would see digital tokens extending lower. Therefore, ETH investors should remain alert as the alt might sweep the $878 range low.

Meanwhile, Ethereum rebounding from the support barrier of $1,284 would mean reversal chances. Buyers can annul the bearish narrative with a higher high beyond $1,700. That would see Ethereum flying towards the psychological zone at $2,000.

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