Ethereum Faces Crash To $600 As Crypto Bear Persists
Crypto Briefing | Jul 01, 2022 12:34AM ET
Ethereum has dipped below a critical area of support, hinting that further losses could be on the horizon.h3 Key Takeaways/h3
- Ethereum has retraced by more than 20% over the past four days.
- Meanwhile, nearly 193,000 Ethereum has been sent to crypto exchanges.
- Further selling pressure could trigger a correction toward $600.
Ethereum looks like it’s at risk of a steep correction as crypto’s rocky June draws to a close. Market participants are rushing to exchanges to exit their positions, while Ethereum is sitting on little to no support.
h2 Ethereum Faces Lower Lows/h2Ethereum looks primed for a significant price movement as selling pressure accelerates.
The number two cryptocurrency has suffered from a price drop of over 20% over the past four days. It was trading at a local high of $1,280 on Jun. 26 before dipping as low as $1,015. Notably, Ethereum broke below the crucial $1,000 level on Jun. 18, and the losses could extend further as downward pressure appears to be on the rise.
On-chain data from Glassnode shows that the number of Ethereum held on known cryptocurrency exchange wallets has significantly increased. Nearly 193,000 ETH worth roughly $200 million has flowed into trading platforms since Jun. 26. The spike in the balance held on exchanges coincides with the recent downward price action, hinting at a sell-off.
Moreover, transaction history shows that Ethereum lacks the demand it needs to prevent further losses. Ethereum’s next significant support level is at $600, where 12.8 million addresses hold 9.55 million ETH. This interest zone is crucial as market participants may sell their holdings in a bid to prevent their investments from going “Out of the Money.”
Get The News You Want
The most critical resistance level for Ethereum is currently at $1,120, where 468,000 addresses have previously purchased over 7 million ETH. A daily candlestick close above this hurdle could invalidate the pessimistic outlook, potentially leading to a surge to $1,300 or even $1,500.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.