The value of ETH is declining along with the rest of the market, which is suffering from a decrease in global risk appetite. In other words, investors prefer not to get involved with super risky assets in the face of both a huge number of problems: from the energy crisis to high inflation rates, and an increase in the cost of funding due to the growth of interest rates by the Fed.
The previous bull cycle in the cryptocurrency market became possible for exactly the same reasons as the unrestrained growth of technology sector stocks: a huge amount of cheap liquidity that large players could easily get for their speculations. Accordingly, when the Fed decided to turn off the tap, lenders began to tighten the terms of loans or leave the markets altogether, and investors began to face problems related to managing their positions. As prices fall, the pressure on players only increases, as a result of which the bankruptcy case has every chance of continuing.
In such conditions, it is not necessary to expect a serious increase in the capitalization of the market
ETH in particular.
The current growth of quotations occurs in a weakness – an ascending wedge, so in the most positive scenario for bulls, we can expect a price increase slightly above the local maximum of $ 1,280 in order to collect stops and lure optimistic buyers into a trap. However, in the very near future, the quotes should return to recent lows near $ 1,000 and continue moving towards $ 500.
