Ethereum (ETH), the second-largest cryptocurrency, has been sustaining below its 50-day Exponential Moving Average (EMA). This is because the Ethereum price has dropped in recent times. The crypto winter has certainly not ceased and several underlying reasons have been responsible for it. As a result, the Ethereum price tumbled significantly. Moreover, the minimum range for Ethereum Price Prediction has been lowered by analysts too.
Moreover, the Ethereum community had seen a divide recently on the question of how to react to the threats of protocol-level transaction censorship due to the United States government sanctions that mention the use of addresses linked to Tornado Cash. The fiery argument in the community started after Ethermine, an Ethereum miner, decided not to process any ETH transactions using the U.S. sanctioned Tornado, an Ethereum-based privacy tool. This move led the entire community to think about the consequences if even other centralized validators follow the same path.
Recent Ethereum Price Performance
Though the ETH crypto had lost considerable value during the recent bearish sessions, it was seen in the ‘green’ for two consecutive days post the dip. The Ethereum price was up by 1.81% and it traded at $1,627.46 at the time of reporting on Wednesday, August 24, 2022. The market cap of the crypto stood at $198.69, up by 1.83%. In addition, the 24-hour trade volume increased slightly by 4.47% to $17.4 billion. The Ethereum Price Prediction rating by Trader’s Union suggests that the crypto giant’s price range would be between $1367.45 and $2855.84 by the end of 2022.
Even after the news of the Ethereum community’s split, the ETH token kept gaining. As reported earlier by Crypto Venture News, the ETH price was up by 3.64% and it traded at $1,612.70 at press time on Tuesday, August 23, 2022. The market valuation of the virtual currency stood at $196.89, up by 3.68%. Moreover, the 24-hour trade volume gained slightly by 4.47% to $17.4 billion.
However, these gains were not enough to rebound from the recent losses as the crypto behemoth lost over 18% during the red sessions along with its biggest competitor Bitcoin (BTC). The data from CoinMarketCap shows that in the last seven days, ETH dropped 13.46%, which is huge. It was noted that the prolonged crypto winter, recent Fed minutes, and the possibility of Ethereum Merge date postponement (that was earlier thought to be closer) were the major driving factors for such a performance.
Earlier, the ETH token rallied about 40% between July 13 and July 16, covering a significant amount of loss incurred in the past week. According to the 7-day data acquired at that point, Ethereum has gained by a huge 24.63%, overtaking Bitcoin, which managed to increase by 5.78%.
Ethereum Technical Analysis
The Summary provided by TradingView indicates that the Ethereum crypto is a ‘sell’ currently with 12 indicators supporting that, 10 indicating that it’s a ‘hold’ (neutral), and just 4 pointing toward a ‘buy’ action. Moreover, the Moving Averages data suggests that Ethereum is a ‘Strong sell’ today with 11 metrics supporting it. The 50-day Exponential Moving Average (EMA) stood at 1644.90, indicating an action of sell. However, the 50-day Simple Moving Average was at 1571.15, indicating. But one point to be noted is that the current Ethereum price is sustaining below these moving average metrics, therefore, the price trend is downwards, which means that bullish investors should not look forward to taking risks.
However, due to the frequent price fluctuations and recent crash sessions, the oscillator metrics provided by the site indicate that Ethereum is a ‘hold’ (neutral) currently. According to the Ethereum technical analysis statistics by Trading, 9 out of 11 indicators count for neutral investment action. The Relative Strength Index was at 45.77, suggesting that no trading actions should be undertaken. Moreover, the Commodity Channel Index was at −78.74, suggesting the same.
Therefore, we can rightly say that the current market conditions might be favorable for the bears. But even they are not recommended to take such risks until they conduct proper research. Also, if you are someone who is looking forward to the Ethereum Merge date for the right investment opportunities, then you need to hold on for a while.