ETH Hits $1219, Is It Time to Panic?

ETH Hits $1219, Is It Time to Panic

The recent drop in Ethereum’s price has scared many investors. Unfortunately, despite numerous positive trends in the industry, the asset appears to be depreciating. There were those who thought the asset’s strength would increase and its market position would be strengthened after the merger. Instead, the opposite occurred. Some of the worst-case scenarios are starting to look realistic.

The dreaded threshold of $400

Benjamin Cowen, a well-known analyst who has accurately anticipated many market downturns and subsequent Bull runs, has predicted that the worst case scenario for Ethereum this year is $400. This was said before the merger was finalized. Many initially dismissed his claim as an attention-seeking stunt, but Ethereum’s rapid descent to new lows in recent months lends credence to his dire prediction.

Within 6 hours of the merge’s completion, ETH dropped by nearly 12%, to $1348. This was a very alarming indicator for the entire community. Other sources indicated that ETH experienced a negative cash flow for 4 weeks in a row, without a single day of cash inflow exceeding cash outflow during that period, adding fuel to the fire of the pessimistic trend.

When we returned the next week, it appeared that things had become even worse for ETH. The price dropped to $1280 on September 19 and $1219 on September 21. The asset is currently trading above the new support line at $1270, but it appears to be relatively weak and vulnerable in light of the potential for large swings in the near future.

Additional variables

While the merger did have an impact, it is not the only factor influencing ETH’s price today. For instance, the Cardano Vasil hard fork on September 22 is blamed for at least some of the previous day’s drop to $1219. With the most recent upgrade, Algorand’s throughput has increased to a whopping 6000 TPS, which is also a huge announcement.

The following months will be challenging ones for Ethereum. In fact, investors’ attention may swiftly shift away from the asset and toward competing initiatives.

Royal Seed
Royal Seed is a brand new contributor to Alltechcraft, and his writings focus on cryptocurrency news and platform reviews. We highly suggest keeping up with his most recent writings, since they are both quite insightful and fascinating. (Follow him on [email protected]_nba )