The market suffered further as major cryptocurrencies Bitcoin and Ethereum fell due to macroeconomic pressures and other factors. As of this writing, the top altcoin Ether is down about 7% weekly.
This is reflected in other altcoins, if not all, moving with ETH. But if the cryptocurrency falls further, will it affect the broader market?
FTX shockwaves can still be felt
Since the demise of crypto exchange FTX, Ethereum has been in the red, but that seems to be normal, just like any other cryptocurrency.
However, the drop in ETH price began after hitting an all-time high of $4,635 last December. Since then, cryptocurrencies have experienced significant ups and downs, mostly the latter.
Ethereum network fees fell to $2.9 million per day from $12.8 million on June 13 as the price of Ether plummeted. Total Value Locked (TVL) on Ethereum-based smart contracts has also decreased by 4.5% over the last 24 hours.
Other factors of ETH
ETH has suffered even more as a result of recent events. For example, the US Federal Reserve is raising interest rates. With the price falling last week, the bears can continue to test the current support price range at his $1,164.
Further market pain is expected if the coin breaks the current support. ETH is important to the altcoin market as many of the altcoins featured heavily on Coingecko’s top 10 list are interconnected.
Therefore, if ETH falls, other cryptocurrency holders may interpret this as a sign of market weakness, further exacerbating market misery. Down 0.2% in 24 hours.
ETH market cap is on a downward trend and is now stable at $144 billion Chart: Tradingview.com
Ethereum: A Battle for the Future?
Today, major indices such as the S&P 500 and Dow Jones fell several percentage points on fears of a recession. A recession affects sentiment about crypto.
Ethereum could find it difficult to retain investors if further rate hikes occur early in the first quarter of next year.
Despite the 7% drop in altcoins over the past seven days, we expect a slight bullish rally to allow the $1,222 levels to be tested again as resistance.
Now, the coin’s previous price action shows that a recovery is underway. However, this is offset by negative macroeconomic factors and highly pessimistic market sentiment, with the bear market continuing ahead of the current event.
Investors and traders should be careful as the current volatility in the market may invalidate long positions in the short term. deaf.
Source: newbtc.com
