Ethereum’s local Token Ether (ETH) lost approximately 20 %per week until March 9 and noted the largest weekly percentage decline since November 2022. According to TradingView data, this harsh wave, which is realized, points to an important technical development that can end the bull trend since June 2022. Here are the ones in Ethereum…
Ethereum price fell hard
This decline in ETH prices came with sagging in June 2022 after the collapse of Terra’s algorithmic stablecoin after the collapse of Ust and causing billions of dollars of damage in the market with sagging. The breaking of this trend line shows that Ethereum’s bull trend, which has lasted for about three years, can end and deeper losses may occur. According to market analysts, such important trend breaks lead to more pressure on sellers in the market and tend to re -purchase at lower levels of investors.
Trend lines help to show the levels of investors allocating funds to the market and the level of price movements. A upward trend line represents the levels in which the recipient demand can prevent price decreases. However, the descending of this line indicates that the demand for the recipient is weakened or that the sellers put more pressure on the market. Technical indicators usually reveal that volatility increases after trend breaking and that price movements occur in wider bands.
Two critical supports broken
This decrease in ETH prices nearly 20 %caused two critical supports to break: both the bull trend line and a decrease below $ 2.100, which has been observed that sellers have been exhausted since August 2023. According to technical analyzes, the next power level for Ethereum is around $ 1,500 in the period of September-October 2023. However, it remains unclear how buyers will react if prices fall to this level. Although it has previously been observed that buyers have been activated in this region, this level is likely to break if the general market conditions are negative.
This development in the Ethereum market is a critical threshold for traders and investors. The way the market will follow in the coming weeks will be shaped depending on whether the technical levels can be protected and market sensitivity. If Ethereum does not find strong support at $ 1,500, the decline is likely to continue to $ 1,400 and even $ 1,300. However, in order for Taurus investors to re -seize market control, ETH prices need to exceed $ 2,523, the highest level of the previous week. If a break occurs above this level, the likelihood of Ethereum will increase the probability of testing $ 2,700 and over. However, in order to realize this, the market needs to be recovered in general and investor confidence must be regained.
Finally, the general macroeconomic developments in the crypto market and the global risk appetite will be decisive on Ethereum’s price movements. The US Federal Reserve (FED) interest policies, inflation data and regulatory developments for the crypto sector will be among the important factors that determine the direction of ETH prices in the coming period. Investors continue to follow closely how the market will react after the current trend breakage.
