Ethereum price plunges 23%: Can ETH revive this fall?
Even after the Merge upgrade, investors were optimistic for an uptrend, but the external factors such as US Fed regular rate hikes, supply chain issues, inflation, and now FTX ‘liquidity crunch’ has reduced the market cap of Ethereum, at least for the short term.
Indeed, ETH is a popular coin, and if the crypto market observes an outflow, ETH will definitely face the challenge. As a result, Ethereum was down more than 15% in the last 48 hours after the Binance-FTX deal was announced. FTX is facing a liquidity crunch on the platform, so Binance will rescue it by acquiring its rival exchange, FTX.
Crypto enthusiasts are now turning bearish about the future potential of the crypto industry due to the liquidity crunch on one of the popular exchanges. Indeed, this bearishness is driven by Binance-led selling pressure. Investors are pulling out the money towards safer assets because of regular rate hikes, at least for the short term.
We think it is a short-term bearishness, and it would not impact the price of Ethereum in the long term. Moreover, it is an ideal opportunity to invest in favorite digital assets because most of them are trading around the yearly low. Read more about our ETC predictions before making your final investment decision.
At the time of writing this post, ETH was trading around $1131. After taking support around $1250, it was in the uptrend, but in the last two days, Ethereum has plunged more than 15% and tested the support of $1050.
Now, most of the technical indicators are bearish, and candlesticks are forming below the lower BB, which suggests extreme bearishness for the short term. Considering all the technical factors, we do not think it is an ideal time of investment, at least for short-term gain, but you can consider it for the next few years.
On the weekly chart, Ethereum has been forming lower lows that suggest a continuation of the long-term bearishness for ETH. You can accumulate some coins at this stage, but if it breaks $1050, it will go up to $500, so that will be an ideal time to accumulate more coins for the long term. Indeed, Ethereum has great potential, so it will provide handsome profit in the next few years.