Ethereum It is currently trading at $1,150, up 10%. The year 2022 has so far put a lot of pressure due to the tightening of monetary conditions by the FED, and crypto assets have not had a good period.
Ethereum traded below the peak of the previous cycle for the first time in its history. The price of the largest altcoin, Ethereum, has dropped below the all-time high of the 2018 cycle of $1,400.
Considering the increased US inflation forecasts for June and the expectation of a possible recession, it can be seen that the markets are still not free from risk.
According to Santiment, an alarming signal has also emerged on the chain for the second-largest cryptocurrency, as the supply of Ethereum on exchanges soared to its highest rate in six months.
Ethereum Could Enter a Long Consolidation
Amid the bearish dips, Ethereum is trading well below former support and is currently holding resistance at the daily MA 200 at $2,633.
Koinfinans.com As we reported, Glassnode recently reported that Mayer Multiple is at 0.37; This could indicate that ETH remains at a discount of around 63% from the daily MA 200 and sees larger bearish divergences for only 1.4% of trading days.
The Mayer Multiple was developed by Trace Mayer as a way to analyze an asset’s price in a historical context.
In 2018, the Mayer Multiple Band reached 0.6, which marks a bearish divergence level with around 10% of all Ethereum trading days below it. During the worst price action in the 2018 bear market, ETH spent 187 days below this band.
In the current market, Ethereum has been trading below this band since the beginning of June and has now been below this band for over 29 days.
If history is any indication, Ethereum could consolidate below the daily MA 200 at $2,633 for a while. However, the possibility of a short-term relief rally below this level is fraught with a further breakout.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.