Ethereum price is crawling back on Monday after its price declined to the lowest level since October during the weekend. ETH, the platform’s native coin, has declined by over 34% from its all-time high.
Ethereum and other risky assets like tech stocks have been in a deep sell-off this year as investors worry about the Federal Reserve. Minutes published last week showed that more Fed officials were getting comfortable with rate hikes and an end to quantitative easing (QE) policies.
They all agree that the Omicron variant poses risks to the economy but contend that rising inflation is a bigger threat. The US will publish the latest consumer inflation data on Tuesday. Analysts expect that the headline consumer price index (CPI) rose to about 7% in December while core CPI rose to about 5%.
Still, despite all these, there is a catalyst that will push the Ethereum price higher later this year. The platform’s developers are busy transitioning the platform from a proof of work network to a proof of stake network. They have already pushed a testnet of the PoS network.
The daily chart shows that the ETH price has been in a deep sell-off in the past few months. Along the way, the coin has formed a descending channel that is shown in green. During the weekend, the coin managed to move below the lower side of this channel.
The 25-day and 50-day moving averages have also formed a bearish crossover while the Relative Strength Index (RSI) has moved below the oversold level.
Therefore, the path of the least resistance for the Ethereum price is lower, with the next key level to watch being at $3,000. A drop below $3000 will see the price drop to about $2,700. On the flip side, a move above the resistance at $3,300 will invalidate this view.
This post was last modified on Jan 10, 2022, 05:10 GMT 05:10