Ethereum has been on a major decline for several days, and it seems like there’s no end in sight. The cryptocurrency fell below $1,500 again last night.
As of today, the price is trading below $1,500 and has broken a key support level, leading to more losses in this bearish trend. The ETH/USD pair is forming a negative trend with resistance near $1,480 on the hourly chart. The price could go higher, but there are limits above $1,500.
Ethereum Price Takes Hit
The price of Ether failed to stage an optimistic move above the $1,660 and $1,750 resistance levels. ETH continued its fall and traded below the $1,600 support zone.
The price opened the doors for a move below $1,550 and $1,500 support levels. Ether is steadily declining and has now settled below the $1,500 level. The price corrected losses after a low was formed near the $1,423 level.
There’s an immediate resistance near the $1,460 level. The market is now facing its first major resistance near the $1,480 level. The price is near a 23.6% Fib retracement level from the recent decline, which means that if it breaks this support, it could close an end to all hopes for recovery.
The ETH/USD pair is trading near a key bearish trend line forming with resistance at $1,480 on the hourly chart. There are a couple of key resistance levels to watch soon. The first one is near $1,540, and there’s also an important 100 hourly simple moving average.
The Fib retracement level is 50% of the recent decline from the swing high of $1,707 to a low of $1,423. Moving above the $1,565 level might send the price towards a new nearby resistance at $1,600. If any more gains are to be made, this will open up the possibility of testing $1,650 resistance.
Ethereum Inflation Rate Drops
With the implementation of the EIP-1559 protocol last year, inflation rates have dropped by 50.77%. ETH has burned 2.6 million, which amounts to $3.76 billion in total value. According to Glassnode data, the total value of Ethereum in Deposit contracts has touched a one-month low of $19,475,077,788.75.
Macro Influence Growing
The price of Ethereum witnessed a strong rally over the optimism surrounding their new upgrade, which will be called “Merge.” The factors favoring the macro have taken over recent optimism about the “merge” upgrade.
Jerome Powell, the Chairman of the Federal Reserve, has said that they are not afraid to increase interest rates again. The inflation rate is still very high for a normal consumer, even if declining. The further tightening of quantitative easing measures could put greater pressure on equity and the crypto market. Ethereum’s growing correlation to the S&P 500 could also impact Ethereum prices.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)