Ethereum Price Tumbles As Bitcoin Slides Below 24,000
Ethereum price (ETH-USD) has broken below $1700 once again as the Bitcoin price got rejected from $25,000 level. The ETH to USD pair failed to gain any strength above $1700 level as the volatility increased in cryptocurrencies.
Many altcoins are also showing negative price action due to a correction in ETH price. If Bitcoin stays in a downtrend, analysts expect Eth to tank even harder. In such an event, bulls can target the monthly lows of $1465 once again. This will be a more than 10% correction from the current price.
As per Ethereum news, the much-awaited Shanghai upgrade and bitcoin ifex 360 ai are expected to go live in March 2023. This will be the first major upgrade since last year’s merge. The upgrade will allow the withdrawals of staked Ethereum from its Beason chain.
Why Is Ethereum Dropping?
Just like other cryptocurrencies, the ETH-USD pair is also dependent on BTC price action. Bitcoin has failed to break above $25,000 psychological level, which has despite several attempts. This has triggered a sell-off in crypto as investors rush to cover their longs.
Since the start of the year, Ethereum price has gained 35% as crypto markets rebounded strongly from 2022 lows. The recovery also got some momentum with the to improve in liquidity in the traditional markets.
Ethereum Price Daily Chart
Although Ether (ETH) has rallied a lot in 2023 but the price has failed to break above $1700. This level also corresponds with the November 2022 high which ETH/USD made before FTX collapsed. On the daily chart, ETH is also making an ascending wedge pattern which can turn out to be very bearish.
If the price breaks below this pattern, then bears will likely target the bottom of the wedge. This will mean a retest of the December 2022 low, which is far below $1200. This will be a 27% price decrease from the current level. Our Ethereum price prediction will remain bearish as long as the price remains below $1700.
On 4H chart, ETH to USD price is getting support from 200 MA. A break of this level can trigger a waterfall till $1460 level which is also the low of this month.