Is Ethereum bears in control at the moment?

March 08, 2023 11:50 AM GMT | By Manu Shankar
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  • Ethereum, just like Bitcoin, took a tumble following the recent unsettling reports involving Silvergate Capital.
  • ETH has lost about -5.7% over the past 14 days, according to CoinGecko.
  • Ethereum on 8 March was trading at US $1,557.06 with a trading volume of US$6,86,37,74,844 over a day.

The overall volatile market conditions have affected the world's second most popular cryptocurrency, Ethereum. It seems that the bears have taken over Ethereum's price action of late. ETH has lost about -5.7% over the past 14 days, according to CoinGecko.

Ethereum's major price decline came between 2 March and 3 March, which resulted in it trading in the tight zone at US$ 1,562 per token. Although there is no clear trend, as the chart shows, it points towards a descending channel.

Ethereum token

Image credit: Trading View 

The RSI of Ethereum stood at 44.2, indicating a sell-off in the token. Before the slide started, the second most popular crypto had gained significant ground earlier this year till mid-February.

The MACD indicators to indicators showed that the momentum in the token seems to have paused a bit due to the recent Silvergate Capital issue and Fed's possible interest hike stance. As the charts show, the blue line below the red line indicates that the bears currently control the situation.   

Reason for Ethereum's slide

Ethereum, just like Bitcoin, took a tumble following the recent unsettling reports involving Silvergate Capital. On 3 March, Silvergate Capital Corp announced it was making a risk-based decision to discontinue the Silvergate Exchange Network, it's crypto payments network. This resulted in Silvergate shares dropping by over 2% toUS$5.77.

In fact, there has been an imminent lack of volatility ahead of the upcoming Shanghai hard fork, which is due later this month. The Shanghai hard fork is one of the network's biggest development, enabling the stakers and validators to withdraw assets from the Beacon Chain.

Another macroeconomic factor is the US Federal Reserve Chair's comment that interest rates are likely to rise following the latest economic data have come in stronger than expected. This would mean that the assets such as cryptos could witness another bearish trend, resulting in investors falling back to a more fixed form of income and the US dollar.

Besides, all the talk of regulation is further denting market confidence, with US Press Secretary Karine Jean-Pierre noting that the administration is keenly following the Silvergate Capital issue.

How is Ethereum's price faring?

Ethereum on 8 March was trading at US $1,557.06 with a trading volume of US$6,86,37,74,844 over a day's time. Ethereum, at the time of writing, was down by 1.12% in the last 24 hours with a live market cap of US$1,90,54,39,59,262. Ethereum had a circulating supply of 12,23,73,866 ETH coins.

While the market participants will expect Ethereum to pull itself up, it may all depend on how things pan out in the following week. Having said that, the market participants will do well to do proper market research before making any critical investment decisions. Any decision taken without proper research may result in losses. 

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