Ethereum price stagnates as further drop looks imminent

Posted: 1 July 2022 2:37 am
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Ethereum is currently showcasing a technical pattern referred to as an “ascending triangle,” indicating an incoming price drop.

  • Ethereum’s share of the crypto market has dipped to a six-month low of 13.8%.
  • More than $445M worth of capital has exited the Ethereum ecosystem since the start of the year.
  • Experts believe Ethereum could scale down to a local bottom of $830 by the end of Q3 2022.

Ethereum’s (ETH) price action remains shaky. The currency breached the $1,100 threshold just a few hours ago before correcting once again. ETH’s weekly losses now stand at -8.4% while trading at $1,049.

ETH’s value slipped on the final day of Q2 2022, staying in line with the financial trend exhibited by most risk assets — including tech-heavy indices such as the S&P 500 and Nasdaq 100. Amid existing fears of higher inflation and rising interest rates, this ongoing price action could very well carry into Q3. ETH’s value slipped by -4.5% on June 30, showcasing losses for over 96 hours running.

Ethereum is currently forming an “ascending triangle” pattern, which is a bearish graph signaling a sharp downtrend for an asset in the near term. Data suggests that a Q3 bottom target of $835 may be in play, which is nearly 20% lower than its existing price levels.

Another bearish indicator is that ETH balances across centralized exchanges are on the rise. To this point, approximately 1 million ETH has made its way into various crypto trading platforms since May 2022. As the volume of ETH present across exchange wallets rises, it suggests growing selling pressure.

Even institutional players are reducing their exposure to the digital currency by taking out funds from various ETH-centric investment vehicles. To this point, $136.9M worth of capital has exited the ETH ecosystem all through June, while nearly $450M has left the currency’s fund pool since the start of 2022.

How to buy Ethereum

Silver lining in sight?

While some investors are offloading their ETH rapidly, crypto analytics provider Santiment has revealed that whale and shark addresses — i.e. wallets holding anywhere between 100 and 100K ETH — have collectively added 1.1% more of the coin’s supply to their bags since June 7.

Smaller investors also seem to be “buying the dip,” with addresses holding between 0.1 and 10 ETH, having risen significantly since November 2021. Therefore, it will be interesting to see how the digital asset’s near-term future pans out.

Disclosure: The author owns a range of cryptocurrencies at the time of writing

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