Ethereum’s native token, Ether (ETH), underwent a sharp relief rally after falling to $880, its lowest level in eighteen months, on June 18.
ETH price regains 30% in two days
Ether’s price reached above $1,150 this June 19, marking 30%-plus gains in just two days. However, at the beginning of the new weekly session this June 20, the ETH/USD pair hinted at giving up its weekend gains, with its price plunging by almost 9% from the $1,150 high.
PostyXBT, an independent market analyst, told his 79,800 followers to be careful about the latest ETH price rally, noting that the move “would make for a clean fakeout.” Excerpts from his statement:
“It looks like an opportunity to flip long towards $1,250, but $BTC still hasn’t reclaimed it’s like-for-like level.”
Next ETH price bear target: $700-$800
The statements appear as Ether, alongside other top cryptocurrencies, including Bitcoin (BTC), Solana (SOL), and Cardano (ADA), have entered a bear market.
ETH/USD now trades 77% below its $4,951-record high, but some tokens are down 90% from their 2021 peak levels.
Concerns about the Federal Reserve’s hawkish policy to tame inflation has stoked these sell-offs, hurting parts of traditional stock markets in tandem. In detail, the U.S. central bank plans to hike benchmark rates into 2023, which may leave investors with lesser liquidity to buy riskier assets like BTC and ETH.
Additionally, forced selling and liquidity troubles led by the so-called decentralized finance, or DeFi, sector have added downside pressure on the crypto market, thus limiting Ether’s prospects of continuing its recovery rally moving forward.
Analyst “Capo of Crypto” states that ETH has not bottomed out yet and that its price could fall further toward the $700-$800 range.
Main target reached, bounced from there, but no bottom formation yet.
Eyes on $700-800 as new support zone, which would complete the 5th of the 5th wave. https://t.co/ZIWnzMW6bk
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