The past few days have been particularly challenging for the price of Ethereum (ETH). The cryptocurrency fell to $1,000 yesterday, where the bulls were able to stave off any further declines.
However, this also caused the number of ETH addresses to suffer losses at an all-time high. Data from analytics provider Glassnode reveals that the number of Ethereum addresses losing money based on the 7-day moving average has hit an all-time high of over 38.6 million.
The above comes from the significant drop in Ether price over the past weeks and especially over the past few days.
The price of Ethereum has lost a whopping 40% of its value over the course of a week, hitting as low as slightly above $1,000 yesterday.
Ethereum is also leading in terms of 24-hour liquidations with $150 million worth of positions liquidated.
Yesterday, Jerome Powell announced a rate hike of 0.75%, hinting that this could be the highest the Fed will raise, and possibly not by so much in the future. That said, cryptocurrencies, including Ethereum, have responded positively, charting over 10% gains in minutes. However, at the time of this writing, Ethereum is back around $1,100.
The drop means Ether has lost 77% of its value since November 2021 and is currently trading below its “real price” of $1,740, data from Glassnode shows.
Additionally, the higher interest rate environment adds to selling pressure, with investors moving away from high-risk trades and seeking safety in traditional hedging assets, such as cash.
Investor confidence in cryptocurrencies also eroded following the collapse of Terra, a $40 billion algorithmic stablecoin project, and lending platform Celsius Network’s decision to halt withdrawals.
Bear flags are bearish continuation patterns that form when the price consolidates inside a triangle structure after a strong downward move.
According to the rules of technical analysis, traders measure bear flag profit targets by subtracting the breakout from the height of the previous drop (known as the “flagpole”), as shown under.
This puts the next downside target for Ethereum’s price at $850, down almost 25% from the price of June 16.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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