Ethereum (ETH) fell below MA 50 on its weekly chart
According to data from CoinMarketCap, the crypto market selloff intensified early Thursday, with Ethereum (ETH) and other alternative cryptocurrencies (altcoins) taking more damage than Bitcoin (BTC). At press time, Ethereum (ETH) was trading at $1,840, a loss of 6.54% over the previous 24 hours.
On Wednesday, Ethereum’s Beacon Chain, which will introduce a proof-of-stake consensus mechanism to Ethereum, underwent a seven-block reorganization, or reorg, sparking concerns over the forthcoming Merge upgrade. A reorg occurs when a block is deleted from the blockchain to make room for a longer chain. It might happen as a result of a malicious attack, a flaw or an unintentional block duplication.
An incoming bounce?
According to Santiment, an on-chain analytics platform, average Ethereum fees are at extremely low levels, with traders currently paying around $2.54 per transaction. “This is the lowest ETH price level since July. Historically, ETH prices rise after average transactions fell below $5.” writes Santiment.
Gas prices fell as the price of ETH dropped when the market sank due to inflation fears and system risks within the broader cryptocurrency market.
Ethereum (ETH) fell below the MA 50 on its weekly chart, marking the eighth consecutive week of losses. The bears, on the other hand, have not given up and are trying to push the price back to $1,700.
In the case of Ethereum, the latest sell-off has pushed the price closer to the MA 200 at $1,179 on the weekly chart, which could serve as the lower support. According to market observers, a rebound could occur around here as major long-term buyers emerge.
The Cryptocurrency Fear & Greed Index fell to 12, indicating “extreme fear” in the crypto market. Buyers who were waiting for extreme oversold conditions to buy and hold cryptocurrency may be drawn to the current extreme fear.
