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Ethereum (ETH)NewsPrice Analysis

ETH Hits $1219, Is It Time to Panic?

Many crypto enthusiasts have been looking at the price chart of ETH with fear. It seems that the asset is losing value despite many promising developments in the industry. Some believed that the merger would bring more power to the asset and fortify its position in the market. The opposite happened. Now, some of the worst scenarios seem to be quite likely.

The dreaded $400 line

Benjamin Cowen, a famous analyst who predicted many dips and Bull runs, said that the worst case for Ethereum is $400 by the end of the year. This statement was made ahead of the merge. While many people thought that his statement was just a way to attract attention, the recent quick pace of Ethereum on its way to new lows makes this forecast a very frightening estimation that has some substance to it.

Right after the merge concluded, ETH lost about 12% within 6 hours and dipped to $1348 which was already a very concerning sign for the whole community. Other news further fortified the bearish trend with some reports indicating that ETH had had a negative cash flow for 4 weeks in a row without a single day of cash inflow surpassing the outflow during that period.

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The next week seemed even worse for ETH. It dipped to $1280 on September 19 and to $1219 on September 21. As of the time of writing, the asset is hovering above the new $1270 support line, but it looks flimsy and quite fragile considering wide swings that may come quite soon.

Other factors in play

While the merger was certainly something that affected the price, other factors are affecting the price of ETH. For example, the Cardano’s Vasil hard fork that concluded on September 22 is considered one of the main factors of the dip to $1219 just the day before. Algorand is also announcing big improvements with the latest upgrade bringing the throughput to an impressive 6000 TPS.

Ethereum has a lot to go through during the upcoming months. It seems that the asset may indeed start losing value quickly with investors turning their heads to competing projects.

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Alexander Fyodorov (Ukraine)

Alexander Fedorov is a new writer on Tokenhell, his articles are about on cryptocurrency news and platform reviews. We recommend keeping an eye on his latest posts as they are always very informative and super interesting.

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