Ethereum Tests $1500: Is Crypto Winter Now Official?

Ethereum ETH/USD plunged 9% to the $1,500 mark on Saturday, marking a new 52-week low of $1,507.04 at press time.

Bitcoin held stronger by comparison, falling around 2%, but the popular retail crypto Dogecoin DOGE/USD followed Ethereum, down about the same percentage.

On Friday, the Labor Department released CPI numbers, which show the Federal Reserve is losing its battle with inflation. The news sent the S&P 500 plummeting nearly 3%, dragging with it many stocks in various sectors and the broader cryptocurrency market.

The decline of top-tier crypto Ethereum is sure to worry stock market traders and investors, who often monitor the crypto market on weekends for signs of what’s to come during normal trading hours. negotiation.

Bullish Ethereum traders were hoping that the month-long decline in crypto value would begin to subside and sideways consolidation would take place before a rebound higher. As the months pass, however, it seems more and more likely that a crypto winter is the current situation.

The last crypto winter, which happened between the beginning of 2018 and lasted until mid-2020, is remembered by many in the industry because of the time it took for various coins and tokens to restore.

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The Ethereum chart: On Friday, Ethereum confirmed trading in a downtrend by falling below the low low of $1,725, which was printed on June 7. The most recent low high in the pattern was printed at $1,832.31 two days later.

  • Also on Friday, Ethereum closed the 24-hour trading session at its lowest price of the day, causing the crypto to print a bearish Marubozu candlestick, indicating that lower prices were likely to occur on Saturday. If the crypto closes the trading session again on Saturday at the day’s low, Ethereum will print a bearish kicker candlestick, which could indicate that even lower prices are in the cards for Sunday.
  • Bullish traders want to see Ethereum hold above $1,500 and then for lower volume to force the crypto to trade sideways in consolidation, which could indicate the crypto is running out of sellers.
  • Bearish traders want to see a new 52 week low on above average volume.
  • A rebound is likely to occur over the next few days as Ethereum’s Relative Strength Index (RSI) hit the 30% level on Saturday. When a stock or crypto’s RSI reaches or falls below this level, it becomes oversold, which can be a buy signal for technical traders.
  • Ethereum has resistance above $1,717 and $1,921 and support below at $1,421 and $1,245.

See also: Dogecoin goes down! Does the dog signal a bad omen for the stock market?

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