The cryptocurrency world has been under sustained pressure like other financial markets after hawkish statements from several Federal Reserve members. They have stated that there has to be a cut in the purchase of bonds and an aggressive increase in interest rates to rein in inflation. Ethereum (ETH) has also felt the negative trend and its downward movement has accelerated this April 6.
Ethereum, among the best altcoin, slid to $3,178, but then recovered to reach $3,200 as the price recovered. Ethereum was among the worst hit by cryptocurrencies succumbing to sustained pressure from the bear market.
Ethereum Has Dropped 5% In The Past 24 Hours, Making It The Biggest Loser But A Turnaround Is Expected
This negative pressure was sustained by the rejection of a monthly resistance reaching $3,400. One analyst noted that Ether could reach $3,000 again as shown by trends on the charts.
Another crypto trader reassured Ethereum traders that the structure for Ethereum continued to be bullish in the Swing Low zone and also the Range (Eq). He said that unless the level was lost, he expected a long position in such regions.
Crypto trader Don Yakka gave further perception into backing for Ethereum when he stressed the significance of the moving average for the 200 days and also the EMA, the exponential moving average.
Yakka said that the ETH chart was quite similar to the Bitcoin chart where the 200 EMA was supported, while the 200 MA was resistant. He said that as long as 200 EMA is held every day, he would not advise any panic at this stage.
The currency market cap for cryptocurrency at present is at $2.003T with Bitcoin dominating with a 41.5% share of the market.
But with the Ethereum team addressing network upgrade issues, it is expected to address gas costs and scale, leading to increased chain adoption. As a result, the coin is expected to rebound for a bull run once the upgrades are done.