Ether Has Lost 32% In A Week, Could Find Bottom Around $600

Ethereum

The Ethereum internal currency, ether, has lost 32% of its value in the past 7 days. The digital asset, which is currently trading at $1,222 is down by 2.4% in the past 24 hours. The coin has steadily lost value in the past 7 days. On June 7, it reached an intraday high of $1,858 but ended the day at $1,842, a loss of 0.9%.

On June 8, it dropped to $1,800, losing 2.2%. On June 9, ether dropped further to $1,795, losing 0.2%. By June 10, the coin ended up dropping to $1,677, a loss of 6.6%. The losses continued on June 11, when ether dropped to $1,535, an 8.5% loss. By June 12, a further loss of 3.6% closing at $1,480. On June 13, it plunged to $1,228, losing 17%, the highest loss in the past 7 days.

A Reflection of The Global Market

Ether price is currently around the $1,200 range in the evening of June 14. The digital currency is reflecting the general sentiment of the coin market which has lost 24% of the global market capitalization. In the past 24 hours, the global coin market capitalization is down by 2.7%.

This is close to the loss in the value of Bitcoin, which shed 27% of its value in the past 7 days. In the past 24 hours, Bitcoin is down by 5%. The price of ether is moving in a descending channel.

ETH/USD chart

Next Solid Support Around $600

At the present price, the digital currency is trading at a value last seen in January, 2021. With the current market sentiment, ether may drop all the way to $600 before the market can support an upswing.

The 10-days and 20-days moving averages show that ether is in a downtrend. The RSI indicator at a value of 32 shows that the coin is in the oversold region, so the bulls will contend with the downward pressure. As a result, there has been a remarkable spike in volume in the past 24 hours, but with little impact on price stabilization. So we shall see lower prices for ether in the next few hours and days as the volume spike peters out.

The $1065 support may hold. However, even if this happens, any rebound will be short-term. So if this support breaks down, ether will fall all the way to the $600 zone.

Author: Jinka Kamma

Jinka Kamma is passionate about the prospects of blockchain and the freedom cryptocurrencies afford people across borders. He holds small amounts of bitcoin and tether.

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