Fear has taken over the cryptocurrency market after six weeks of losses. Many large caps have lost long-term support, and ETH is one of them. Market participants who are more risk averse should stay on the sidelines and conserve their money.
In just 24 hours, a major sell-off in cryptocurrencies wiped off almost $200 billion in market value. The collapse of the TerraUSD stablecoin prompted a broad decrease in the cryptocurrency complex, which had a significant influence on large tokens. Bitcoin fell as much as 10% to its lowest level since December 2020 in the last day, while Ethereum fell as much as 16 percent. Traders and investors alike value capital preservation above all else. Fence-straddling becomes a crucial ability in these times of extreme volatility. On the other hand, many market participants like trying to time the bottom. Catching knives, especially with Bitcoin and other digital assets, can rapidly become unpleasant. ETH, on the other hand, is approaching a significant long-term support level. Let us review the ETH price
ETH Price Prediction
Ethereum had solid support levels at $2684 and $2254, but both have been broken. After falling below $2254, its price got bearish momentum. However, at $1541, we are approaching a critical support level. If it holds, we may see a retest of the $2254 and $2684 resistance levels. If $1541 falls down, the $1111 price level could operate as a critical Ethereum support level in the future.
On larger time frames like Monthly and Weekly, the trend of ETH is overwhelmingly bearish, and it could drop to $1541 or lower in the coming weeks. ETH going back over $2684 would be a sign of a shift in bearish momentum. However, that alone will not be sufficient to indicate a trend change. Market participants who are more risk averse should stay on the sidelines and save their money for the future.
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