The cryptocurrency market is still in a daze from last week’s precipitous drop. In 10 days, Ether lost around 45 percent of its value.

On the four-day chart, the price of Ethereum (ETH) has now returned to the all-time low of the RSI recorded in 2018 when the cryptocurrency was trading at $81.

On Saturday, ETH values ​​dipped below crucial levels and are currently trading in the triple digits as the recent cryptocurrency selloff continues.

According to data provided by Coingecko, at the time of writing, ETH is trading at $1,008, a decrease of around 40 percent from last week.

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Ether drops to as low as $997

ETH is currently selling for $997.61 on Etherscan, down roughly 9 percent over the last 24 hours. The breakout of this support level is expected to herald further losses for Ethereum.

The bears are in full control of the market and there are no major buyers. In the bearish scenario, if the sellers force the price below $900, the likely demand zone is between $700 and $900. Upon reaching this region, ETH can enter the accumulation phase.

Currently, inflation, a faltering stock market, rising interest rates, and concerns about a recession are fueling negative sentiment in the stock and crypto markets.

Total market capitalization of ETH at $122 billion on the daily chart | Source:

A $1,700 opportunity in a bullish scenario

In a bullish situation, ETH will certainly approach $1,700 at static resistance. The ability to overcome this barrier depends on the purchasing power of the market.

This eventuality seems unlikely given that the current macroeconomic climate has caused investors to view high-risk assets with skepticism.

Recent reports indicate that Ether developers have chosen to delay the network’s move to a proof-of-stake (PoS) consensus as the bear market persists.

This enhancement is anticipated to end reliance on Proof-of-Work (PoW) mining and the Merge scalability solution, which has been in development for six years.

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Strong market sell-off pulls ETH down

The recent drop in ETH, the second largest cryptocurrency, is due to the liquidation of a major investment, possibly by Three Arrows Capital. The liquidation led to the unloading of a substantial sum of ETH on the open market.

After the Federal Reserve raised interest rates by 75 basis points, the highest increase in three decades, the stock market advanced on Wednesday afternoon.

According to Edward Moya, Senior Market Analyst at OANDA, the fact that the cryptocurrency market has not followed through is “concerning for some investors.”

Analysts estimate that Bitcoin and Ether can drop as much as 85 percent during bear markets.

Due to the impossibility of predicting and timing the market, there is never an “ideal” time to buy cryptocurrencies. However, according to analysts, now could be a good time to enter the market because prices are cheap.

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