After a bullish run last week, ETHUSD is showing significant bearish momentum this week. The Ethereum price dropped below $1,400 Tuesday, down over 8% in the past 24 hours, erasing all of the last week’s growth. What’s causing the shift in short-term market sentiment? Will Ethereum price recover? Let’s look closely at Ethereum and issue a price prediction for this week.
- Ethereum struggles to hold support, and the “merge trade” hype is slowing down.
- The global cryptocurrency market falls below $1 trillion, signaling a bearish week.
- Upcoming NFT Expoverse could bring back bullish momentum to Ethereum.
Ethereum’s “Merge Trade” Hype Is Slowing Down
Last week’s Ethereum’s spectacular bullish momentum, which caused most other cryptocurrencies to show significant price growth, was attributed to the hype surrounding the network’s upcoming merge.
Come September, Ethereum’s network will transition from a proof-of-stake to a proof-of-work consensus model, creating a more eco-friendly ecosystem and promoting a more sustainable approach to blockchain technology, smart contracts, DeFi, NFTs, and other leading tech running on Ethereum.
Moreover, Ethereum’s founder, Vitalik Buterin, took the stage at EthCC last week to discuss the state of the network and its upcoming merge. During his presentation, Vitalik mentioned how Ethereum would be 40% complete post-merge and how the network could handle upwards of 100k transactions per second.
Currently, Ethereum’s network runs on average 30-50 TPS. An upgrade to handle a TPS order of magnitude higher will positively affect Ethereum’s price. Many argue that Ethereum’s “merge trade” is far from over, some speculating that ETH could even overtake Bitcoin in market cap soon.
However, now that EthCC is over, the hype surrounding Ethereum is slowing down, with trading volume and price decreasing significantly over the past week. Regardless, Ethereum is still the third-most traded cryptocurrency on the market, following Tether (USDT) and Bitcoin (BTC).
Ethereum Price Prediction
The monthly Ethereum price chart from CoinMarketCap shows that the market is trending towards the $1,224 range for support.
Ethereum is likely to drop to that level or at least test support in the next 24-48 hours before making its next move.
If Bitcoin continues to struggle, Ethereum may dip even lower to the $1,000 range, but the chances of ETHUSD trading for any significant amount of time below $1,000 is relatively low.
With the global cryptocurrency market cap below the $1 trillion range, the bears are in control this week. With shaky stock prices and declining Bitcoin prices, this week is likely to be bearish for most digital assets.
The good news is that a major conference is taking place this weekend. NFT Expoverse in Los Angeles is scheduled for July 29th-31st. During major conferences, the market usually sees a rebound, which means Ethereum could recover this weekend and test the $1,600 levels again.
For those planning to attend the event, make sure to connect with NullTX. We will be present at NFT Expoverse looking to conduct interviews and would love to meet our readers!
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.