The cryptocurrency market is in a downward spiral, particularly Ethereum and other altcoins.
The market capitalization fell by $50 billion over the weekend, leaving it at $950 billion. Eventually, it fell below the $1 trillion level. The current drop was driven by the price decline of Bitcoin, Ethereum, and other cryptocurrencies.
The pattern began during the Federal Reserve’s annual meeting on August 26. Jerome Powell delivered a speech in which he reiterated the agency’s intentions to maintain its aggressive stance on combating inflation. After the speech, the cryptocurrency and stock markets fell.
From that point until the morning of August 29, cryptocurrency values continued to decline. However, as of midday on August 29, there is a bullish trend in the cryptocurrency market. Ethereum has recovered 2.63 percent of its morning losses and is now trading at $1,518.81.
The price correction began early on August 29, lowering ETH’s price to $1,451 and it’s market capitalization to $177 billion. Currently, ETH trades under two large supply zones, according to data from IntoTheBlock.
According to Martinez, the two supply zones in which Ethereum was exchanged were $1,475 and $1,575. In the first supply zone, 585K addresses acquired $2.81 million worth of ETH. In the second zone, 526K addresses own 3.44 million worth of ETH. Support can only be at $1,335, indicating that 412K addresses purchased $2,2 million worth of ETH.
Ali Martinez forecasts a forthcoming negative trend based on the support zones. Martinez also noted that the daily Ethereum network growth in the sector is at its lowest level in two years, which is not a healthy indicator.
Numerous investors anticipated that the imminent update would propel Ethereum and the whole cryptocurrency market skyward. However, the present sequence of events suggests that the Merge may have been Priced In already.