Ethereum Price Faces Rejection at $1.7K Amid Potential Death Cross

Ethereum price has been in the red for the past few days, hovering around its lowest level since June 2023 amid global economic uncertainty. Ethereum, the world’s second-largest cryptocurrency and the biggest altcoin by market cap, has crashed by nearly 13% in the month to date but remains 37% higher in the year to date. At press time, ETH was trading 1.15% lower at $1,639.80. Ethereum’s total market capitalization has slipped over the past 24 hours to $197 billion, while the total volume of the asset traded over the same period jumped by more than 60%.

Fundamentals

Ethereum price has been trading sideways for the past few days amid weak crypto market sentiment and concerns about the Fed’s monetary path. Bitcoin, the largest cryptocurrency by market cap, has dropped below the crucial level of $26,000, weakening the crypto market sentiment further. Altcoins such as XRP, Cardano, Solana, Cardano, Polygon, and Shiba Inu among others, have dipped by more than 2% each over the past week.

Data by Coinmarketcap shows that the global crypto market cap has declined to $1.05 trillion, with the total cryptocurrency market volume increasing by 38% for the day. Bitcoin’s dominance has remained unchanged over the same period. The Crypto Fear and Greed Index shows an extreme fear level of 35, indicating that investors are about to sell irrationally.

The US dollar index, which measures the performance of the greenback against six major currencies, was barely unchanged at 104.135 on Monday, slightly below its highest level since June. The US Treasury yields were also in the red on Monday, with the yield on the benchmark 10-year Treasury yield lower at 4.228% and the 30-year Treasury note at 4.27%.

Investors have remained focused on the remarks made by the Federal Reserve chair Jerome Powell last week during the Fed’s annual Jackson Hole retreat. Powell noted that the inflation rate remains high above the policymakers’ 2% target and that further interest rate hikes were needed to achieve their target. According to the CME FedWatch Tool, markets anticipate an 80% chance of the Fed pausing its hike campaign in its next meeting in September, but the probability of a 25-basis point hike in November is at 51%.

Markets will be closely watching several key economic data slated to be published later this week, hunting for clues on the economic outlook. The Consumer Board Consumer Confidence for August is expected to be published on Tuesday, with the Q2 quarterly GDP set to be released on Wednesday. Additionally, the Fed’s favorite inflation gauge, the core Personal Consumption Expenditures (PCE) Index data for July is due later on Thursday.

Ethereum Price Technical Outlook

Ethereum price has been trading sideways for the past few days, failing to clear the important level of $1,700 against the US dollar. The asset has been range-bound, trading between the tight range of $1,680 and $1,645. As seen on the daily chart, Ethereum remains below the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages. The asset’s price is facing a potential death across, which happens when the 50-day EMA crosses below the 200-day EMA.

As such, I expect the Ethereum price to continue moving sideways in the ensuing sessions as it struggles to find direction. ETH could start a fresh decline if it breaks below the immediate support level of $1,620. Conversely, a flip above the major hurdle at $1,700 could pave the way for further price increases.

ETH Price Chart