Ethereum price has dropped by 11.8% over the last week.
It had surged above $2,100 after the Shanghai upgrade.
At press time, it was trading at $1,855 almost $300 below the post-Shanghai highs.
In recent days, the cryptocurrency market has been quite fragile, largely because of the increased threat of an economic recession. There has also been persistent high inflation and fluctuations in the stock market.
The top cryptocurrencies have been largely affected within the crypto space with Ethereum declining below its pre-Shanghai price levels and Bitcoin dropping below $28k. The global cryptocurrency market cap has also been on the decline since hitting a high above $1.25 billion on Thursday, April 13.
Key Ethereum price levels to watch
The sudden drop in price has left ETH investors/traders wondering what the future holds for the Ethereum price especially since the Shappella upgrade was seen as a game changer to the second-largest cryptocurrency by market cap. Most are now scratching their head wondering whether or not it will recover from this setback.
Ethereum price has already dropped past the first support level at $1,896. However, at its current price of $1,855, it is still too early to determine whether the bearish breakout is genuine or false.
If today’s candlestick closes below yesterday’s low of $1,913.60, there could be a high likelihood of a further decline towards the next significant support level at $1,846, a scenario that sees the cryptocurrency maintain a bearish trend until the end of the week.
If the price closes above $1,900 today, it could trigger a bounce back towards the $1,930 price zone tomorrow.
Looking into the future from a midterm perspective, the price of Ethereum has retreated to the middle of a wide trading range as sellers take control as the price remains below the $2,000 level. This is a likely indicator of the cryptocurrency facing continued pressure meaning it will struggle to regain its previous bullish momentum.