As the week came to a close, the entire cryptocurrency market faced the wrath of the bear. Most tokens witnessed their price supports take a hit with many investors seeing it as an opportunity to “buy the dip”. Up until last week, altcoins were performing better than Bitcoin but it looks like the world’s largest altcoin was doing a better job fending the bear now.
On Friday, Ethereum took a hit with a daily drop of over 7 percent. This red bleed leaked into the weekly rate as the loss percentage shot up to 17 percent. At the time of writing, ETH was trading for $2855.92 while holding a market cap of $336.84 billion. The latest bear crash took a massive chunk out of the daily trading volume, clocking in at $19.2 billion.
Ethereum’s crash was also accompanied by a lot of people moving into DeFi investments. New investments were still coming in from supporters and crypto organizations.
Ethereum 1 hour:
The largest altcoin had its work cut out as the last red candle shattered immediate price supports. After the day’s price crunch, the new support was formed at $2872.
Relative Strength Index: The RSI fell below the oversold threshold just as the bear broke Ethereum’s price support. Massive sell offs are a part of major price crunches as displayed in the Ethereum ecosystem.
Chaikin Money Flow: Ethereum’s CMF followed the RSI’s footsteps by crashing abruptly. The fall below the zero line signified that the capital leaving the market had overtaken the influx.
Parabolic SAR: All the markers for the day stayed above the price candles as the last candle dropped an entire level.
Ethereum 1 day:
In the long term, Ethereum’s recent crash paled in comparison to earlier drops. The support on the daily spectrum held near the $1700 mark, a marker created in July.
Chaikin Money Flow: Ethereum broke its bullish pattern by crashing below the zero line. Daily trading investments have decreased significantly since climbing to good heights in mid-August.
Parabolic SAR: The markers stayed above for the entirety of September with the latest crash contributing to the momentum shift. A price increase would enable the cryptocurrency to move into greener pastures.
Relative Strength Index: The sudden change in investor sentiment was on full show with the k-curve. The number of users selling their ETH tokens had surpassed the number of HODLers.