Ethereum was down by 4.75%, trading at $2,115 at 05:14 AM, UTC, and its trading volume stands at $23,294,977,156.
The move downward pushed Ether’s market capitalisation down to $249,276,086,411 billion. At its highest, ETH’s market capitalisation was $479.29 billion.
In the past 24-hours, ETH traded between the levels ranging between $2,134.58 and $2,322.47.
The presence of a rising wedge chart shows that the buyers no longer have a significant surplus. Therefore the price of Ethereum is set to see a decline (i.e. seller gaining majority). This is further confirmed by the presence of three black crows (3BC) that signal sellers are pushing buyers out of the market.
Furthermore, Ethereum formed a death cross indicated by the 50-day moving average crossing below the 200-day moving average, which signals a shift from bull trend to bear market.
Moreover, the MACD lines have crossed the 0-level and pointed downwards, indicating a bull trend switching to a bear trend.
The RSI is under 50 (standing at 40), indicating that Ethereum is in the bear market.
While the downtrend is evident, short candlesticks show a weak downtrend as there is a relative equilibrium between the buying and selling interests, which explains why prices tend to change more slowly.
The drop of 4.75% of the ETH price does not surprise the crypto community. The decline started on June 22, and the crypto has been making corrective price actions with some weak positive trends.
While indicators clearly demonstrate evidence of the decline, rumours of a delay for the London hard fork have been considered the reason for the drop being seen today.
Meanwhile, pressures from Chinese regulators on Bitcoin mining and renewed attention on the crypto’s overall energy footprint pushed the overall prices of other cryptocurrencies down.
Despite the bearish market sentiment and negative news, Ethereum continues to progress technologically with its London hard fork upgrade on two Ethereum test networks. The release of the London hard fork is scheduled to take place on August 4.
The launch of Ethereum’s long-awaited London hard fork has brought mixed reactions, with some enthusiasts excited for the delayed-release while some are watching on with cautious optimism.
Ethereum 2.0 (London hard fork) has been implemented into various test nests, and its release will replace Ethereum’s current proof of work with proof of stake.
The thesis of ETH’s downtrend can be invalided if buyers overpower sellers and push the price up. The crypto is likely to trade between the $2232 resistance zone and the $2081 support zone.
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