The market is feeling abruptly bearish as the BTC price plunged into an area not seen since the end of July. The altcoin market has also plunged sharply, as predicted by the on-chain effect of Bitcoin’s return to three-week lows. Analysts are anticipating a deeper correction in Ethereum, as it has outperformed Bitcoin in the recent rally.
Bitcoin and altcoin market lost billions in hours
Recent analysis shows that Ethereum may soon experience a correction of up to 28%. The Ethereum market has been quite interesting in the past months. After months of winter-like bearish sentiment in the crypto market, ETH has gained more than 100%. It later hit $2,080 from a low of $896. However, Ethereum is now running out of power. The leading cryptocurrency has lost more than 8% in the last 24 hours. It is currently trading at $1,700.
“ETH is open to $1,300”
According to a tweet shared by prominent crypto analyst Ali Martinez, it suggests a possible drop to the $1,300 range as ETH has broken its ascending channel. This represents a 28% price correction from current levels.
https://twitter.com/ali_charts/status/15605211178695217153
The analyst shared more data from IntoTheBlock in another tweet. The data shows that close to 680,000 addresses bought Ethereum for around $1,700-1,750. Therefore, the leading altcoin should stay above this range. Otherwise, it will head towards a route where buyers can panic sell and lead to further declines to the $1,300 range. Martinez sums it up like this:
Ethereum must stay above this demand zone to have any chance of recovery. Otherwise, these addresses could try to break even in their positions, triggering a correction to $1,300.
Notably, this price action is ahead of the Ethereum merge scheduled for September 15, 2022. The crypto market is volatile and therefore it is still unclear which direction the trend will take in the coming days and weeks.
What you need to know about the Ethereum merge
Users are frustrated as Ethereum developers correct the misunderstandings surrounding the merge. A blog post on Ethereum.org on Wednesday debunks misconceptions about merge. Some Ethereum users are unaware that after the merge, there will be no reduction in gas fee. Also, there will be no improvement in transaction speeds.
Additionally, the developers explain that users will not need to stake Ethereum to run a node. Some other important disclosures include that users cannot withdraw staked ETH immediately after the merge. Specifically, the ETH staked in the Shanghai upgrade will be unlocked. Another thing to note is that the merge upgrade will not cause network downtime. The developers explain that Ethereum’s transition to proof-of-stake (PoS) is designed to occur with zero downtime. As Kriptokoin.com, we have mentioned 5 known mistakes about Ethereum merge in this article.
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