{"id":698,"date":"2021-03-01T10:36:57","date_gmt":"2021-03-01T15:36:57","guid":{"rendered":"https:\/\/www.hodlin.com\/blog\/?p=698"},"modified":"2021-03-01T10:39:01","modified_gmt":"2021-03-01T15:39:01","slug":"ethereum-price-fall-26-percent-bears-readying-eth-usd-for-650","status":"publish","type":"post","link":"https:\/\/www.hodlin.com\/blog\/ethereum-price-fall-26-percent-bears-readying-eth-usd-for-650","title":{"rendered":"Ethereum Price Fall 26%, Bears Readying ETH\/USD for $650?"},"content":{"rendered":"\n

The Ethereum price is plunging, shedding 26 percent week<\/a> to date. It is nonetheless steady on the last day.<\/strong><\/p>\n\n\n\n

\"Ethereum
Ethereum Price Drops As Bear Dominated March 1st<\/figcaption><\/figure>\n\n\n\n

Notably, ETH losses mirror the performance of most crypto assets\u2014outside of stablecoins. Confirming losses of last February 2021, most are in red, free-falling amid a resurgent greenback buoyed by supportive fundamentals.<\/p>\n\n\n\n

As of writing on March 1, sellers are in control.<\/p>\n\n\n\n

From the daily chart, trading volumes are picking up, suggesting movement from traders looking to exit their positions and book profits. It follows a sharp rise in prices over the last three months following the announcement of the Beacon Chain mainnet and subsequent activation.<\/p>\n\n\n\n

Trackers reveal that volumes steadied over the weekend. Still, traders are closely monitoring how ETH\/USD prices react at key support levels.<\/p>\n\n\n\n

Ethereum Price Overview<\/h2>\n\n\n\n

From the daily chart, sellers are in control.<\/p>\n\n\n\n

In the immediate term, the first reaction point to the upside is 2017 highs of around $1.48k. For technical analysts, this is a reaction point\u2014a retest level that should hold (it didn’t), that’s now acting as resistance. Notably, it marks February 28 highs.<\/p>\n\n\n\n

The breakout below $1.5k could signal the potential for a deeper retracement back to $1k\u2014the 23.6 percent Fibonacci retracement, and even to $650\u2014in the medium term.<\/p>\n\n\n\n

A concern for optimistic bulls is how the prices’ degradation is with relatively high trading volumes\u2014as of last week. Prices are also banding along the lower BB\u2014pointing to high sell momentum, in an ETH\/USD price action trading within a bearish breakout pattern.<\/p>\n\n\n\n

Accordingly, for buyers to be in control, ETH\/USD prices must rally back above $1.5k\u2014confirming Jan 2021 highs as a retest level. Ideally, the revival ought to be with high trading volumes\u2014preferably exceeding those of February 23.<\/p>\n\n\n\n

If not, sellers may continue pressing the sell pedal, potentially forcing ETH prices back to $1k\u2014or worse, $650, as aforementioned.<\/p>\n\n\n\n

Ethereum Market Movers<\/h2>\n\n\n\n

Ethereum is a smart contracting platform and the home of decentralized finance (DeFi).<\/p>\n\n\n\n

In the past few weeks, rising Gas prices dominated headlines. Peaking at around $38, Gas prices have more than halved to $11, much to network users’ relief.<\/p>\n\n\n\n

However, the falling of Gas could be attributed to migration to competing platforms like Binance Smart Chain (BSC). The latest being the 1inch Exchange who pins their migration to the EVM-compatible BSC to high fees in Ethereum.<\/p>\n\n\n\n

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\ud83d\udc40\ud83d\ude49 More than 32k transactions on Binance Smart Chain since start… #DeFi<\/a> #HaltAndCatchFire<\/a> \ud83d\udd25 pic.twitter.com\/1HJzEYRjC5<\/a><\/p>— 1inch Network (@1inch) February 27, 2021<\/a><\/blockquote>