If the Ethereum (ETH) community is hoping for any rally this week, then the analysts have bad news for them.
Running Week is not good for Ethereum
The running week for Ethereum is not at all bright as the technical analysis of Ethereum is indicating a bearish trend.
Even the risks clinging onto Ethereum have been inflating, increasing more concerns among the investors. The bulls did make an attempt of bringing Ethereum close to the crucial resistance level. However, their efforts failed and the bulls were not able to get past the hurdle.
This is when the price action ended up slipping and the trading price of Ethereum moved even lower. Although Ethereum had made it close to the essential historic barrier, it ended up slipping from there.
According to the experts, if the Russia-Ukraine war lingers on for a longer period, then ETH’s price may continue dropping. The price of Ethereum may end up experiencing a huge sell-off, bringing the price of ETH even lower.
Ethereum’s Price Emerged only for a Brief Moment
For now, both the geopolitical and technical factors are bad news for the investors. They are both showing a negative trend. These factors have kept the trading price of Ethereum to a lower level.
On June 26, the bulls ended up becoming part of a bull trap. This meant that initially, the bulls were able to form a rally and the price of ETH started growing higher.
However, the rally was short-lived as the bulls failed to break out through the resistance level. This ended up lowering the confidence level of the investors even more. They stopped supporting ETH, which ended up pulling the price of ETH even lower.
Now, the fear of cold war is even stronger following the United States’ announcement of opening up a permanent base in Poland. The information suggests that Russia is now in a state of panic and chances are, the country may retaliate.
Possibility of ETH’s Price Drop
According to the technical analysis data surrounding Ethereum, its price may end up dropping to $1,243.89.
From this point, the trading price of Ethereum may continue dropping and it may end up plummeting below $1,000. As the price of Ethereum continues dropping, it may end up hitting a strong support mark.
The particular level will be at $883.60, and the price of ETH may drop even more if the bulls do not show much resistance. The bulls will have to form a strong rally and only then, Bitcoin may succeed in hitting and crossing the $1,000 figure.