The cryptocurrency crash has wiped billions of dollars from the market over the past few weeks. This has highlighted major liquidity issues in firms across the industry.
The biggest cryptocurrency, Bitcoin, fell below $20K, adding to macroeconomic issues and raising fears of a bearish escalation. Similarly, major altcoins are also witnessing a decline, with the biggest altcoins struggling to stay above the $1k crucial level.
ETH Price Analysis
Ethereum price started a fresh decline below the $1150 level at the $1200 level. The largest altcoin is struggling to maintain the $1100 level at press time and is down 8% in the last 24 hours.
The key support is at the $1,050 level, if ETH/USDT breaks below this support it may revisit the $1K level. Worst case scenario, ETH price could even test the recent low of $800.
However, on the other hand, if the bulls stay above the $1,050 level, the next major resistance may lie at the $1,200 level.
Overall, looking at the current market scenario, no major rally in ETH price is likely in the next 12 hours.
Ethereum To Crash In More coming months,
As the crypto market follows the macro trend like inflation, Daniel Cheung, co-founder of Pangea Fund, said in a recent tweet that the second largest crypto will see more declines in the month of July and August.
Ethereum is currently trading at a 0.91 correlation to Nasdaq. With such a high correlation, the overall crypto market will follow the traditional markets and will not recover in the coming 2 months with the Fed increase in interest rate and inflation rate
Daniel believes that Ethereum will follow the stock market once the market feels the pressure of rising rates and continued inflation and even potential bearish pressure.