Ethereum’s price appeared to be pretty strong in the times when the crypto markets remained sluggish. Despite a couple of bullish jumps, ETH price continues to remain under the bearish influence and also displays the possibility to remain bearish for a long time. Apart from the current descending trend, mass Ethereum selling may also kick off soon which may strengthen the bearish group over the space.
ETH price started a fresh decline as it faced a rejection below $1300 showing heavy bearish signs. The price, which is now trading below the 100 hourly SMA at 1290, broke below a key bullish trend line acting as support. Besides, an upside wave pushed the price below the 0.618 FIB level from the $1349 high to $1240 low.
The next major resistance for the ETH price could be around $1350, beyond which it may rise to test $1400. Moreover, extended gains may further rise towards $1480. On the contrary, if the ETH fails to surge beyond $1300, it is expected to drop toward $1260 or lower. In such case, the next major support levels could be around $1240, below which the price could gain bearish momentum towards $1200 support.
More bearish pressure is coming for Ethereum (ETH) price
The Ethereum platform recently underwent a network upgrade in which it switched from proof-of-work to proof-of-stake without halting the platform. This change requires validators to stake ETH on the ETH 2.0 platform. Interestingly, the total amount of ETH on the platform exceeds the required amount and is marking new highs every new day.
Presently, the ETH 2.0 contract address holds nearly 12% of the entire supply which is getting shrunk with every transaction due to the burn mechanism. This may further lead to a huge drop in the exchange reserves while TVL could keep on rising high which is an alarming situation when the Shanghai Hard Fork is fast approaching.
According to a popular crypto analytical platform, the supply reduction that has begun since the merge could change the dynamics of supply and demand. This could create significant volatility that could trigger massive selling after the Shanghai hard fork!
