The digital currency bitcoin collapsed to $18,299 at 11:40 am on June 19, according to the Binance cryptocurrency exchange.
The value of the digital currency dropped below $19 thousand for the first time since the end of November 2020. The first cryptocurrency in the world has been falling in price since June 6, 2022. Then it was trading above $31 thousand.
Earlier on June 18, it was reported that by 9:55 (Moscow time), bitcoin reached $19,450 thousand. The decrease was 6.57%.
Further on that day, the fall continued. As of 10:05 (Moscow time), the bitcoin exchange rate was declining by 7.22% and held at $19,342 thousand.
On Monday, June 13, the bitcoin exchange rate fell by almost 12% and broke through another psychological mark of $ 25 thousand. The first cryptocurrency pulled other coins along with it.
Experts explain the decline in the digital asset, first of all, by inflation in the United States. The second reason for the collapse of cryptocurrencies, economists call the tightening of monetary policy of central banks of different countries: first of all, the US Federal Reserve and the Euro-centrobank.
The third reason for the fall of bitcoin, analysts point to proceedings in connection with the collapse of the UST stablecoin (stablecoins are cryptocurrencies whose exchange rate is directly linked to the real currency, usually to the dollar).
At this moment, the cryptocurrency market is still stunned by the sharp drop last week. In 10 days, the ether lost about 45% of its value.
On the four-day chart, the price of Ethereum (ETH) has returned to the historical minimum of the RSI recorded in 2018, when the cryptocurrency was trading at $81.
On Saturday, the value of ETH fell below critical levels and is currently trading in triple digits as the recent cryptocurrency sell-off continued.
According to data provided by Coingecko, at the time of writing, ETH is trading at $1008, which is about 40% less than in the last week.
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Ether dropped to 997 dollars
Currently, ETH is being sold on Etherscan at a price of $997.61, which is about 9% less than in the last 24 hours. A breach of this support level is expected to portend heavier losses for Ethereum.
Bears completely control the market, and there are no major buyers. In a bearish scenario, if sellers lower the price below $900, the likely demand zone is between $700 and $900. Having reached this region, ETH can move into the accumulation phase.
Currently, inflation, stock market instability, rising interest rates and fears of a recession are fueling negative sentiment in the stock and cryptocurrency markets.
The total market capitalization of ETH on the daily chart is $ 122 billion | Source: TradingView.com
A shot at $1,700 in a bullish scenario
In a bullish situation, the static resistance of ETH will surely approach $1,700. The ability to overcome this barrier depends on the purchasing power of the market.
This option seems unlikely, given that the current macroeconomic climate makes investors skeptical of high-risk assets.
Recent reports show that ether developers have decided to postpone the network’s transition to a Proof-of-Stake (PoS) consensus while the bear market persists.