Saturday, July 2, 2022

Ethereum shows recovery, but analysts remain bearish on the second-largest crypto

The Takeaway:

After breaking above $200 mark and then dropping back to $170, ETH is most likely to dive below $130 next month. Analysts have predicted that Ethereum will retrace back to $130-$120 range before gaining back momentum. As the disastrous week for crypto market ends ETH is the only major coin that showed any recovery.

Earlier this month Ethereum broke above many technical barriers to cross the $200 mark. After remaining stagnant at $170, Ethereum reached a monthly high at $224. However, it failed to sustain and dropped back to $170. At the time of writing, ETH is changing hands at $174. 

Trend analysts seem confident that ETH is most likely to go down from here. After reaching at $224, ETH is expected to go as low as $130 as we enter next month. When Ethereum broke several technical barriers without any resistance, many analysts had warned of possible price manipulation. 

On 24th September, bitcoin crashed 13% overnight and along with that other major altcoins also suffered significantly. The Moving Average Convergence/Divergence (MACD) is showing an accumulation period before the cryptocurrency turns green and gain back momentum. ETH miners recently raised the gas limit per block by over 25% to accommodate large transaction influx that has been congesting the network for the last few months. 

Currently, Etheterum blockchain network faces scalability issues. Earlier Bloomberg reported that Ethereum blockchain is “almost full.” Etherum developers have been talking of ETH2.0 from a long time which is supposed to fix current scalability issues. 

The second-largest cryptocurrency has found strong technical support above $150 mark. Among all the other major coins Ethereum has shown recovery as the disastrous week for the crypto market comes to an end. Let us know in comments where do you think Ethereum is headed? 

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Paul Rea
Paul Rea
Paul is a graduate from the Queensland University of Technology and has a demonstrated history of working in the computer and network security industry. Apart from being a dedicated author, Paul also has an interest in graphic designing.

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