ETH price has been in a consolidation mode in the past few days as investors focus on the Federal Reserve and the recent crash of Terra’s ecosystem. The coin is trading at $2,030, which is about 18% from its lowest level this month. This price is in line with that of other coins like Bitcoin, Ripple, and Bitcoin Cash. So, will Ethereum go up or will the downward trend continue?
Will Ethereum go up?
ETH price crashed hard earlier this month when Terra’s ecosystem imploded. At the time, the prices of most cryptocurrencies declined as investors became aware that they could lose everything in a matter of days. Bitcoin crashed to below $25,000 while Ethereum moved to around $1,700.
In the past few days, the coin has mirrored the performance of American stocks. It declined slightly last week when the S&P 500 index moved to a bear market following the weak results from companies like Target and Walmart.
So, will Ethereum go up? There are several factors that will affect the coin’s price. First, it will react to the ongoing developments on the merger with the Beacon Chain. This merge, which is expected to happen in August will make Ethereum a faster and more reliable platform. Second, there is a likelihood that many investors and developers will embrace Ethereum, which has a longer track record in the industry.
ETH price prediction
Turning to the daily chart, we see that the Ethereum price has been in a strong bearish trend in the past few days. As it dropped, the coin managed to move below the important support level at $2,161, which was the lowest level on January 24th. The pair is now hovering near this level and has moved below the short and long-term moving averages. It is also below the important support at $2,306.
Therefore, the ETH price will likely keep falling as bears target the important support level at $1,800. On the flip side, a move above the resistance at $2,161 will invalidate the bearish view.