After days of trading in the green, the crypto market experienced quite a drop yesterday night. Some large-cap cryptocurrencies fell by as much as 5% in tandem with Bitcoin. The global cryptocurrency market was valued at $1.57 trillion, down 2% from the previous day.
BTC’s slump has resumed, and it is now under downward pressure. Although BTC traders are upbeat, they see this drop as a good correction, as on-chain measures indicate that the currency is entering an accumulating phase.
On August 4, Ethereum is expected to see its London hard fork, which will alter the way transactions are handled. Although the price activity appears to be negative in the near term.
The update is known as Ethereum Improvement Protocol 1559, or EIP-1559, and it will be part of the “London hard fork” network upgrade.
Ahead of Ethereum’s EIP 1559, technical expert Michal van de Poppe believes that a break below $2,540 opens the door for ETH/USD to drop to $2,180 lows.
On the 4-hour chart, the technical picture implies bears are a threat, with ETH likely to return lower support levels ahead of the London hard fork. If Ethereum Bulls are to defend the 50 MA at $2,410, they must seek higher gains.
Dropping below $2,165, on the other hand, might indicate trouble for bulls, as ETH could enter the demand zone, which runs from $1,969 to $2,108.
The 4-hour RSI is below 50 and sinking, as can be seen in the technical indicators. The MACD, another technical indicator, has made a bearish crossover and is expected to move into the negative zone.
The price of Ether is down 5%, with additional losses possible ahead of the highly anticipated London hard fork. At the time of writing ETH is trading at $2,503.