- The Monday session saw the ETH price declining to vital support.
- The leading altcoin dropped to $1,700. It has battled to plunge beneath the level for the last two months.
- Ethereum shows signs to drop to its next crucial target at $1,000.
The recent intensified crypto sell-off had ETH crashing to its crucial support. While writing this, the best alternative coins trade at $1,730. Keep in mind that that is the lowest mark since 26 June. With such a move, the asset lost around 60% of its market cap since the record highs of $201 billion.
Ethereum’s price saw massive losses in the Asian and American sessions as distress engulfed the financial space. The anxiety pushed the greed and fear index to 17, multi-month lows. Meanwhile, the CBOE volatility index climbed to its highest zone since May. The crypto greed and fear index plunged to 19.
The recent market sell-off follows the high record of corona cases by most countries. The United Kingdom recorded 68,000 new COVID crises on Monday. Also, most of the US states had increased pandemic cases. Also, Germany and France saw the upswings.
The intense fear forced investors to avoid risky products like stocks and cryptocurrency. Keep in mind that global indices such as FTSE 100, DAX, and Dow Jones dropped by over 1.5%. Generally, cryptocurrencies experience deeper correction when indices plunge.
On the other part, the United States index surges to its highest zone after many months as financial investors find safety there. ETH tends to register underperformances when the United States dollar surges.
ETH value plunges as the TVL (Total Value Locked) in DeFi dropped. DeFi Pulse recorded the collateral in crucial DeFi platforms dropping to above $53 billion.
According to the daily price chart, ETH prices saw massive drops overnight. Still, the altcoin found significant support around the $1,700 marks, a level that it battled in June and May. Also, ETH dropped beneath the 200-d and 50-d EMA (Exponential Moving Averages). The asset sees a declining triangle pattern as RSI plunged to the oversold zone.
For now, the coin has a high probability of further plunges. With such an event, long-term investors will have to consider the psychological level at $1,000, around 40% beneath the current price level.