Late Friday, Ethereum was once again feeling the pinch of the broader crypto market, trading below $1,800, as prices retreated for the fourth consecutive session.
In spite of these little losses, the bearish momentum has prevented ETH from breaking through the $1,800 barrier in the last seven days.
After a sluggish pace in April, inflation surged again in May, which might have a negative influence on cryptocurrency markets already suffering from the Federal Reserve’s stricter monetary policies.
At the time of writing, ETH/USD has fallen to an intraday low of $1,761, less than 24 hours after reaching a high of $1,812.90. According to data from CoinMarketCap, the price of Ethereum has declined by more than 7 percent during the past 24 hours.
Suggested Reading | Ethereum Market Cap Cut By Over $100 Billion Last Month
The Ethereum price has continued to tumble under the dynamic resistance of the descending trendline since last month.
The aggressive sell-off ETH/USDT pair seen during mid-May surpassed the January low of $2170.
However, in the face of a growing instability in the crypto market, the selling pressure fell, resulting in a slow yet steady decline.
Ethereum Still Managed To Pull Up 0.33%
In spite of Ethereum’s intraday low of $1,761, a review of the previous week reveals a 0.33 percent price growth.
This has allowed ETH to remain above the $1,750 level, despite attempts by the bears to lower the price.
ETH total market cap at $201 billion on the daily chart | Source: TradingView.com
Other cryptocurrencies also took a heavy blow, including Solana (losing 9%), Avalanche (falling 10%), and Cardano, which has retreated by more than 10% in the past 24 hours.
Since the first half of last month the price of ETH has decreased in response to the descending trendline and has reached a new low of $1718. Multiple retests of this resistance indicate its significant impact on market players.
Suggested Reading | Dogecoin Market Cap Shed $6-B Last Month – Will Bearish Pressure Continue The Pulldown?
Still Retaining Strength In Terms Of Market Cap
Ethereum remains the month’s second-largest digital asset by market capitalization. In May, ETH had a market capitalization of approximately $235 billion.
The decline in Ethereum’s market capitalization can be traced to a broader selloff of digital assets over the past few weeks.
Meanwhile, Inflation is driving households to be more prudent with their spending management, especially those with lower incomes who spend a larger portion of their budget on basics, such as food and utility bills.
Economists believe that tighter budgets could limit demand for digital assets.
Featured image from The VR Soldier, chart from TradingView.com
Credit: Source link