The cryptocurrency crash over the last few weeks has wiped off billions of dollars from the market. This has exposed major liquidity issues at firms across the industry
The largest crypto, Bitcoin Fell below $20K will rise macroeconomic issues and be sparking fear of increasing recession. Likewise, major altcoins are also seeing a downtrend with the largest altcoin struggling to stay above the $1k crucial level.
ETH Price Analysis
Ethereum price started the fresh decline at the $1200 level dropping below $1150. At Press time the largest altcoin is struggling to hold the $1100 level and is down by 8% in the last 24 hours.
The major support lies at the $1,050 level, if ETH/USDT drops below this support it could revisit the $1K level. In the worst case, ETH price might also test the recent lows at $800 levels.
However, on the other hand, if bulls hold above the $1,050 level, the next major resistance could be at the $1200 level.
Overall considering the current market scenario ETH price is unlikely to see any major bullish move for the next 12 hours.
Ethereum To Crash More in the Coming Months!
As the crypto market follows the macro trend like inflation, Co-founder of Pangea Fund, Daniel Cheung in a recent tweet stated that the second-largest crypto will see more downtrend in the month of July and August.
Ethereum is currently trading at 0.91 correlation to Nasdaq. With such a high correlation, the overall crypto market will follow the traditional markets and will not recover in the coming 2 months With FED’s increase in the interest rate and inflation rate
Daniel believes that Ethereum will follow the stock market once markets feel the pressure of rising rates and the continuous pressure of inflation and even a possible recession.