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Ethereum (ETH) is approaching a significant support level with a current downtrend consistent with volatile behaviour in Bitcoin, with some technical analysts suggesting a bearish influence. Both demand and accumulation levels on the chart have been low and it is crucial for Ethereum to move away from the $1,700 support line to avoid further bearish pressure or become challenging to recover. There needs to be a halt in Bitcoin’s sharp retracement for Ethereum to initiate a recovery, according to experts. The Relative Strength Index (RSI) indicates the market is oversold, below both the half-line and 40-mark.
This article originally appeared on www.newsbtc.com
Ethereum has been on a downward trajectory over the past few weeks, with bears setting their sights on the next downside target if the $1,700 support level breaks. The cryptocurrency, which reached an all-time high of $4,362 in May, has seen a significant decline as the broader market experiences a sell-off.
The downward pressure on Ethereum is largely driven by concerns over regulatory crackdowns in China and the United States, as well as the increasing scrutiny of the cryptocurrency sector as a whole. While Ethereum has been one of the most popular and successful cryptocurrencies to date, it is not immune to market forces and external pressures.
If the $1,700 support level does break, analysts predict that the next downside target for Ethereum could be as low as $1,400. This would represent a significant drop from its current price of around $2,200, and would likely cause many investors to panic and sell off their holdings.
However, Ethereum has shown resilience in the past and has a strong community of developers and supporters who believe in its long-term potential. Many see the current downturn as an opportunity to buy in at a lower price and accumulate more Ethereum for the future.
Despite the current bearish sentiment around Ethereum, there are still many positive factors to consider. The cryptocurrency is undergoing a major upgrade, known as Ethereum 2.0, which is designed to increase its scalability and reduce its energy consumption. This upgrade is expected to make Ethereum more efficient and sustainable in the long term.
Additionally, Ethereum is still the platform of choice for many decentralized applications (dapps) and smart contracts. It has a strong network effect, with many developers and companies building on its platform. This means that even if Ethereum experiences short-term price fluctuations, its long-term value proposition is still strong.
In conclusion, Ethereum bears have set their sights on the next downside target if the $1,700 support level breaks, but there are still many positive factors to consider. While the current market conditions are challenging, Ethereum has shown resilience in the past and has a strong community of supporters who believe in its long-term potential. It is important for investors to consider both the short-term and long-term prospects for Ethereum before making any investment decisions.
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