The market crash has caught Ethereum in its loop. As pressures mount around BTC and other coins, ETG feels the wrath of the market, too.
The ETH platform witnesses prices falling by the hour. At press time, the price is down by 15% compared to the quarterly high. Most importantly, the psychological support level of $1600 has been breached, too.
Hence, investors are much unnerved now. A big chunk of them want to withdraw funds. On the other hand, the remaining lot seems to show no revived interest in putting their bet on ETH anytime now. Especially when XRP has also dropped below $2, and others are following suit.
What fuelled The Downfall?
Several anxieties culminated to bring the market to its current stance. Starting with new trade tensions that surfaced after the peculiar Trump tariff policies. Meanwhile, a lot of geopolitical shifts have occurred in recent times. Each impacting the traditional investment market largely.
The effects of the same are also felt across the crypto market.
A Technical Analysis
How is Ethereum faring from the technical PoV? Investors know that the coin is approaching a support zone. If the price rests there, that would be more than satisfactory for the investors who have kept trusting the coin for its legacy.
The supprt zone lies between $1520 and $1540. In late 2023, this range was quite crucial. A lot of coins plummeted. However, ETH held its fort. However, the current situation is worse than before. So there is a lot of pressure around this support level.
If ETH doesn’t gain more traction from the new investors, that coin could slip past the mark. The next major resistance would be around $1400.
The Bearish Signal Was Already There
This precarious situation was incumbent. When TH broke the resistance band of $1870 to $1880, it was apparent that the downfall of the coin had started. The move consolidated, and now ETH is reeling under stress. The Q2 will show if there is any way out.
