Ethereum Bloodbath to Continue: ETH Price At Risk Of Crashing Nearly 30% Soon!
The Ethereum continues to be more bearish as each day passes. It seems that Ethereum is struggling in the price graph despite the successful merge. After going for $1,800 before the merge, ETH has unfortunately brought bearish woes for investors and traders, completely wiping out the merge hype. This week has been concluded as the most crucial week for Ethereum as it has crashed all the way down to $1,300.
A 30% Crash Is Waiting For ETH
Since the Ethereum merge, the bears of the market have emerged, making a 35% decline in ETH’s price. Ethereum builds its solid bearish momentum when the market sentiment has been pretty bullish with a vision that the merger will bring outstanding returns.
According to CoinMarketCap, Ethereum is currently trading near $1,350 with a market cap of $166 billion. The technical data of the Ethereum price graph shows that Ethereum could have a 30% price correction downside, which can throw Ethereum below the $1,000 mark in the upcoming months. Ethereum has broken all fundamental supports to hold its price upward, and it seems it may trigger a solid crash ahead.
What Is Next For Ethereum?
The main reasons behind the price plummeting are the selling pressure among investors during the merge hype and the FOMC meeting tomorrow. The 8-day and 21-day moving averages represent a classical bloodbath for Ethereum. However, the Fibonacci retracement indicates a pullback at $1,250, making a support level at $1,000. The $1,250 level is crucial as the 200-week moving roams near the same territory.
According to analysts, Ethereum might see a reversal this week as it can trigger a bullish trend near the $1,250 level, and can go up to $1,500. Ethereum’s options data shows a bullish demand, confirming a reversal soon in the price graph.
The options data from Deribit indicates a high volume of Ethereum put and call options. The open interest for ETH is currently at $1,000 and $2,000 for September’s expiry. Bloomberg stated, “This is part of a controversial theory that says options writers — often financial professionals — make more money than options buyers.
The argument is that an asset’s price will move toward the level where options writers make the most profit — that is, where the greatest number of options expire as worthless for buyers. Deribit data puts this maximum pain point around $1,600.”
The Ethereum merge has recently grabbed the attention of the SEC chair Gary Gensler, and it seems that it may soon fall under regulations. However, it is expected the bulls will be back soon due to the increase in whale movements, which can take Ethereum to its investment goals.