Will Ethereum Fall to $1,000 Again? ETH Comment!

Is the disaster scenario for ETH coming true? The popular cryptocurrency failed to break the critical level again.

ETH, the largest altcoin by market capitalization, suffered a serious decline after the long-awaited Merge. This was interpreted by many investors as "buy the news, sell the event". In the long run, the PoS transition will make significant contributions to the Ethereum network and cryptocurrency. But what about the short term? We take a look at the possible stops and current situation of the ETH price in the coming days.

Ethereum (ETH)

At the time of writing, the ETH price was at $1,314. Trading volume fell to $10.4 billion and the market cap stands at $161 billion. The price experienced a significant pullback during the week, easing to a support of $1,240. Amid the growing overall bearish momentum in the market and the US Fed's rate hike, the Ethereum price suffered its biggest loss in recent times. Thus, nearly 70% of the June-August rebound evaporated.

For now, the price failed to hold above the $1,330 resistance. Buyers' efforts were met with higher rejection candles.

ETH Comment

After the last failed test of resistance, Ethereum price is taking a downward turn amid concerns that the ongoing correction has resumed. A revisit of $1,240 seems likely in the coming hours. On the other hand, there are concerns that the support level may not be able to limit losses this time. If the critical support breaks and closes below it, ETH traders could see $1,130 and $1,000 levels.

RSI supports the bearish trend in the market. The price below the key falling EMAs (20, 50, 100 and 200) also highlighted the bearish pressure. ETH buyers' closes above the $1,330 resistance could push the price to the $1,400 levels.

Gensler's threat of "securities", referring to Ethereum with the PoS transition, increased the downward momentum of the ETH price. Some weakening of the popular cryptocurrency after Merge was already expected, but Gensler was just the icing on the cake. On the other hand, Gensler should not have a say about Ethereum. As a matter of fact, he expressed his support for a bill expanding the regulatory powers of the CFTC, the regulatory body he sees as a competitor, over BTC and ETH. The SEC Chairman thinks that most of the cryptocurrency market is securities and condones the definition of a few assets such as BTC and ETH as commodities.