Ether recently traded slightly above its low of USD 1,223 in September, but it has dropped by over 70% after peaking in 2022. The MACD has been trending sideways, which indicates that sellers target the next support at USD 1,000 and a further drop in the price.
The price of Ether (ETH) has consolidated over the last few days as the Fear & Greed Index reached its lowest levels in weeks. The token of the Ethereum network recently traded at USD 1,300, slightly above its low of USD 1,223 in September.
However, Ether has dropped by over 70% since its peak in 2022, bringing its market capitalization to just over USD 160 billion.
The Fear and Greed Index Indicates that Investors Are Scared
Although investors have experienced growing fear lately, the price of Ether has remained relatively stable. The Fear & Greed Index of CNN fell to 19, its lowest level since last month, when it was still at 47.
According to the data, momentum in the stock market has also fallen into the territory of extreme fear. Factors like stock price strength/breadth and put/call options have dropped dramatically, as well as junk bond demand and market volatility.
The Fear & Greed Index of CNN Money mainly focuses on the stock market but also gauges sentiment in other financial areas. Meanwhile, that metric has dropped to 20 for Bitcoin, indicating that cryptocurrency investors are also scared. Extreme fear in the market has historically caused financial assets to perform poorly.
In 2022, the US Federal Reserve (Fed) raised interest rates by 300 basis points and shrunk its balance sheet. Consequently, the upcoming FOMC meeting minutes and US inflation data will help determine how much the government agency will increase those percentages.
Since the Proof-of-Stake (PoS) upgrade started, many analysts expected the price of Ether to perform better.
Prediction of the Price of Ether in the Short Term
The weekly chart shows that the price of Ether has consolidated over the last few days. The coin has traded between the support and resistance levels at USD 1,223 and USD 1,420. In addition, its value dropped below the 25- and 50-day moving average (MA) lines.
After falling below the neutral point, the moving average convergence divergence (MACD) is trending sideways. The best way to describe that consolidation could be to call it “the calm before the storm.”
The price of Ether might continue dropping in the coming days as sellers target the next support at USD 1,000. The best option would be for the value of ETH to rally until it reaches resistance at USD 1,500.
Ether is trading at around USD 1,296 and has accumulated a 0.8% gain over the last 24 hours. While its daily trading volume is above USD 7.41 billion, its market capitalization is about USD 156.41 billion, according to CoinGecko.
Investors should research cryptocurrencies like Ether before buying them to know their all-time high, behavior, and possible future price. That will allow them to find the most convenient investment opportunity to minimize the risk of losing money.
By Alexander Salazar
