Ethereum (ETH) Fell To $1,217.83 Two Days After Network’s Core Developers Announce Delays

The top altcoin Ethereum(ETH) experienced a more than 7% decrease on both Friday and Saturday, finally reaching $1,530.

US inflation data for May sent riskier assets in a spiral on Friday. In response, Ethereum, following the US equity markets, dropped below 1,700 levels.

While the US annual rate of inflation created a new 40-year high, increasing from 8.3% to 8.6% in May. This rise induced concerts over the Fed adopting stricter measures to tackle inflation.

The market sentiments Saturday failed to improve on Saturday as Ethereum joins other crypto assets in the red zone. The total crypto market cap decreased by $97 billion over the two days.

On top of all this came the news of a delay in the difficult bomb, a crucial step towards the merge. In short, it means further delay of the highly-awaited The Merge. As a result, it added further pressure on Ethereum.

It is now being assumed that the Merge will now happen after the expected August Merge date.

However, the report stated that developers affirmed that the difficulty bomb delay will not affect the scheduled timing of the Merge.

Technical Analysis

Experts conducting technical analysis of Ethereum have concluded that ETH will have to pass through the $1,569 pivot to aim at $1,640 as the First Major Resistance Level and test resistance at $1,680, the Saturday high.

The second leading crypto asset by market cap will require crypto market support in order to return to $1,600 levels.

The Second Major Resistance Level could be tested at $1,750 by an extended rebound while the Third Major Resistance Level stands at $1,930.

However, if ETH fails to pass through the pivot then the First Major Support Level at $1,460 will come into action. ETH should prevent sub-$1,400 barring another extended sell-off. The Second Major Support Level stands at $1,390.

There appears to be a bearish signal analyzing the EMAs and the 4-hourly candlestick chart. On 12th June, in the morning, the 50-day EMA withdrew from the 100-day EMA. The 100-day EMA pulled back from the 200-day EMA; the ETH price was negative. And, if unsuccessful to move past the 50-day EMA would bring leave sub-$1,500 into the play.

At the time of writing, ETH was trading at $1,217.83, down 16.54% in the past 24 hours.

ALSO READ: Druckenmiller Prefers In The Inflationary Bull Market

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing