Disclaimer: The CoinMarketCap cryptocurrency community price estimate is based only on the votes of its users. Estimates do not guarantee end-of-month prices.
Over the last few months, Ethereum (ETH) and the wider cryptocurrency market have operated in an atmosphere characterized by high inflation, in which the Federal Reserve took steps to enforce high-interest rates.
Notably, riskier assets like Ethereum have been hit hard as concerns about an economic slowdown have increased, with the second-largest cryptocurrency by market cap briefly falling below the $1,000 support zone in June.
Notwithstanding the substantial decline in the price of Ethereum since the start of the year, the community over at CoinMarketCap is forecasting that the decentralized currency will trade at an average price of $2,529 by July 31, 2022.
This projection has received 11,529 votes and is $1,479 or 140% more than ETH’s current price.
Ethereum price analysis
At the time of publication, Ethereum is trading at $1,052, down 0.41% in the last 24 hours and down 14.29% over the previous week. The total market worth of the DeFi asset is $127 billion, according to data from CoinMarketCap data.
Ethereum’s price remains in a bearish zone having retested the $1,000 support level. ETH established a support level close to $1,000 and has since corrected upward, above the levels of $1,030 and $1,050, following a brief wave of recovery activity.
Near the $1,060 mark is where buyers and bulls will encounter their first obstacle. The next significant barrier to overcome is located close to the $1,080 zone. If the price manages to sustain a move higher while staying over the $1,120 resistance zone, a sizable uptrend may get underway.
However, It is also possible that the price of Ethereum will continue to fall if it is unable to break over the resistance level of $1,080. In the event that prices go lower, initial support may be found close to the $1,050 zone or the trend line.
The area of around $1,000 is the next significant support. A closing that is lower than the $1,000 barrier might trigger a significant drop. Under the circumstances outlined, the price of ether may see a decline to the level of $925. If more losses occur, the price may go below $900.
Ethereum inflow into exchanges highest since 2020
As per CryptoQuant analyst Venture Founder, Ethereum is now going through one of the highest periods of net inflow to cryptocurrency exchanges since the year 2020. This, he pointed out, is in contrast to Bitcoin (BTC), which continues to suffer regular net outflows; hence, it does not come as a surprise that ETH has been selling off against Bitcoin.
“Since the sub $1k correction, ETH is having one of the largest net inflow periods on exchanges since 2020: This is in sharp contrast to BTC where even during the recent correction, consistent net outflows remained. Not a coincidence ETH has been selling off against Bitcoin.”
“More than 200,000 ETH. worth over $200 million, has been sent to known crypto exchanges wallets over the past five days.”
As a result of the inflow into exchanges and the current market downturn in the trading, the expert considers that Ethereum is now susceptible to a significant price drop. The history of transactions reveals that almost 468,000 addresses together own more than 7 million ETH and are now in the red. These addresses may soon begin exiting their positions.
He added: “a spike in selling pressure could trigger a downswing to $700 or even $600.”
Ethereum continues to see new addresses grow
Nevertheless, data recorded in June found that Ethereum has been continuing to accumulate hundreds of thousands of new addresses, specifically, the network has been adding around 500,000 new addresses each week, surpassing 200 million cumulative addresses, as of June 8.
While recently Meta’s (NASDAQ: FB) Facebook has started testing Ethereum and Polygon NFTs with select creators in the U.S. at the same time Circle’s Euro Coin is available now on Ethereum and will be supported by leading crypto exchanges and DeFi protocols.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.