Ethereum’s price appeared to be pretty strong in the times when the crypto markets remained sluggish. Despite a couple of bullish jumps, ETH price continues to remain under the bearish influence and also displays the possibility to remain bearish for a long time. Apart from the current descending trend, mass Ethereum selling may also kick off soon which may strengthen the bearish group over the space.
The ETH price began with a fresh decline as it faced a rejection below $1300 which flashed huge bearish signals. The price which is now trading below $1290 at 100-hr SMA, broke below a major bullish trend line having as the support. Further, the price settled below 0.618 FIB levels from the upward wave to hit $1240 from the highs around $1349.
The next major resistance for the ETH price could be around $1350, beyond which it may rise to test $1400. Moreover, extended gains may further rise towards $1480. On the contrary, if the ETH fails to surge beyond $1300, it is expected to drop toward $1260 or lower. In such case, the next major support levels could be around $1240, below which the price could gain bearish momentum towards $1200 support.
More Bearish Pressure Incoming for Ethereum (ETH) Price
Ethereum platform recently underwent a network upgrade, where-in it switched from Proof-of-Work to Proof-of-Stake without halting the platform. This transformation required the validators to stake ETH on ETH 2.0 platform. Interestingly, the total amount of ETH staked on the platform surpassed the required amount and is marking new highs every new day.
Presently, the ETH 2.0 contract address holds nearly 12% of the entire supply which is getting shrunk with every transaction due to the burn mechanism. This may further lead to a huge drop in the exchange reserves while TVL could keep on rising high which is an alarming situation when the Shanghai Hard Fork is fast approaching.
As per a popular crypto analytical platform, the supply that has begun to decline since the Merge could change the supply & demand dynamics. This could induce significant volatility that may trigger a mass selling post the Shanghai Hard Fork!