- Ethereum price has been in a strong downward trend lately.
- There are concerns about the DeFi and NFT industries.
- Ethereum developers delayed the merge process to Q3.
Ethereum price declined below the important support level at $3,000 as demand for the coin eased. It fell to a low of $2,990 on Monday morning. This price was about 16.30% below the highest level in April this year. Its market cap has declined to about $360 billion.
Ethereum merge delay
Ethereum price has declined in the past few days after the developers decided to delay the merge process. This merge was scheduled to happen in June this year and was postponed to the third quarter. This means that it will happen either in July, August, or September. After this merge, the Ether that has been locked in the Beacon Chain will be unlocked.
The merge delay happened after the developers and the community members took time to assess the beacon chain well. They even did a shadow launch to gauge its performance and how nodes react on the harshest conditions available.
Ethereum price is also falling as the broad sentiment of the industry remains a bit weak. For example, Bitcoin has moved below $40,000 while the total market cap of all digital coins declined to about $1.9 trillion. A quick look also shows that the volume of all cryptocurrencies has declined in the past few days.
Meanwhile, there are concerns about the key industries like decentralized finance (DeFi) and non-fungible tokens (NFT). The total value locked in Ethereum’s DeFi market has dropped to $115 billion.
At the same time, the NFT has shown some weakness. For example, a tweet by Jack Dorsey that sold for $2.9 million in 2021 has lost so much value that it is being sold for $14,000.
Ethereum price prediction
The daily chart shows that the ETH price has been in a strong bearish trend in the past few days. It has managed to move below the upper side of the ascending channel that is shown in blue. The coin has also dropped below the 25-day and 50-day moving averages while the MACD has moved below the neutral level.
Therefore, there is a likelihood that the Ethereum price will continue falling as sellers target the lower side of the ascending channel at around $2,700.
