Ethereum ETH/USD plunged 9% to the $1,500 mark on Saturday, marking a new 52-week low of $1507.04 at the time of publication.
Bitcoin was holding stronger in comparison, falling about 2%, but the retail-popular crypto Dogecoin DOGE/USD was following Ethereum, trading down by about the same percentage.
On Friday, the Labor Department released CPI numbers, which showed the Federal Reserve is losing its battle with inflation. The news caused the S&P 500 to slide almost 3% lower, taking many stocks across various sectors and the broader cryptocurrency market with it.
The decline in Ethereum, an apex crypto, will be sure to concern traders and investors in the stock market, who often watch the crypto market over the weekends for signs of what’s to come during regular trading hours.
Bullish Ethereum traders have hoped the months-long decline in the cryptos value would begin to taper off and that sideways consolidation would take place before a rebound to the upside. As the months go on, however, it looks more and more likely a crypto winter is the current situation.
The last crypto winter, which occurred between the beginning of 2018 and lasted until mid-2020, is remembered by many in the sector because of the length of time it took for various coins and tokens to recover.
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The Ethereum Chart: On Friday, Ethereum confirmed its trading in a downtrend by falling below the most recent lower low of $1,725, which was printed on June 7. The most recent lower high within the pattern was printed at $1,832.31 two days later.
- Also on Friday, Ethereum closed the 24-hour trading session at its low-of-day price, which caused the crypto to print a bearish Marubozu candlestick, indicating lower prices were likely to come on Saturday. If the crypto closes the trading session on Saturday at the low-of-day again, Ethereum will print a bearish kicker candlestick, which could indicate even lower prices are in the cards for Sunday.
- Bullish traders want to see Ethereum hold above $1,500 and then for declining volume to force the crypto to trade sideways in consolidation, which could indicate the crypto is running out of sellers.
- Bearish traders want to see another new 52-week low on higher-than-average volume.
- A bounce will likely come over the next few days because Ethereum’s relative strength index (RSI) reached the 30% level on Saturday. When a stock or crypto’s RSI reaches or falls below that level, it becomes oversold, which can be a buy signal for technical traders.
- Ethereum has resistance above at $1,717 and $1,921 and support below at $1,421 and $1,245.