Ethereum has reached the deciding level, which would generate further price structures. The recent intraday decline has taken 28% of its gains in the past 24 hours. It broke the long-sustained $2900 support zone and has led to a $2150 historically proven demand zone.
As of writing, per CoinMarketCap, the combined market dominance of market leaders stands at 71.2%. Where Ethereum had 15.0%, while the ace was Bitcoin with 56.4%, and in the past 7 days, both fell sharply due to global woes and profit booking.
BTC & ETH have made a red sea in the crypto landscape with a ripple effect in other altcoins. The global market cap has dipped below $2 Trillion; precisely, it has reached $1.81 Trillion with an intraday 15.66% fall.
Immense Decline in Ethereum and Other Assets
The market leaders Bitcoin (BTC) and Ethereum (ETH) have been gravely affected and exhibited a significant downturn due to the following reasons:
The latest employment data fell short of expectations. As 114,000 jobs were added by employers in the U.S., which was way down the expected 185,000, this has upped fears of an impending recession. This economic uncertainty shifted investors’ and traders’ bullish sentiment to the bearish side, impacting the crypto market.
The Fear has increased among investors and traders, as the fear and greed index needled at 26.
Similarly, ETH’s fall accelerated on August 5th, 2024, as the Japanese market and the South Korean market declined sharply.
World Markets Down
The Nikkei 225 (NI225) and Japan 225 (JP225) plunged abnormally due to the Bank of Japan’s rate hike; they fell 16% and 12%, respectively. The South Korean stock market (KOSPI), which has a heavy influence on the cryptos, took a hit and fell straight 12%, as well.
Will ETH Price Optimism Revive or Plummet?
From the global woes, the hit taken by Ethereum happened to be devastating; the price over the week fell by over 35%.
Once $2900 was broken, ETH declined below 200-day, and 50-day EMAs. The MACD showed a bearish cross with a broadening histogram downwards at 96.6.
However, the loss of strength in price decline has been caught by RSI, as it entered the extremely oversold territory below 30 at 18.92. Since RSI is in the oversold, there happens to be a higher probability for ETH to show resurgence.
Therefore, if ETH bounces back, then the resistance would lie at $2900, and $2500, respectively. However, the breach of $2150 would give bears the downward target of $1900 and $1550, respectively.
