The bearish trend continues in the Ethereum (ETH) cryptocurrency market, and the volume of sold tokens is growing. Therefore, ETH/USD should drop in price to $ 300 by October 1.
The downward movement accelerated on Monday. In three days, ETH dropped from $ 375 to $ 324 (by 13.6%). ETH/USD fulfilled the previous forecast by almost 100%: Ethereum rate rose to $ 396 and began to fall rapidly. Sellers broke through another support barrier ($ 330) on Wednesday, and the ETH rate consolidated below the 100-hour average ($ 340).
There is a bearish flag on ETH/USD chart. It was formed as a result of a dump from $ 480 to $ 324. On September 21, the support level at $ 373 was broken. Given its height, Ethereum price should drop to $ 208 (44%) during the downtrend.
The bullish trend in the ETH market, which started in March, is largely in line with the uptrend recorded last year. In 2020, ETH rate significantly exceeded the highs of 2019. However, the relative strength index and MACD indicators were at a lower level at the time of the bullish trend. This fact speaks of an imminent decline in the value of the coin in the near future.
In 2017, Ethereum was pumped through ICOs, this year DeFi served as the engine of the upward movement, thanks to which the asset was able to reverse the protracted bearish trend. Nevertheless, the attractiveness of the ETH blockchain and, accordingly, DeFI began to fall due to an unprecedented rise in transaction processing fees. On September 2, a record was set for the average commission amount – $ 14,583. During the month, this figure fell to $ 3,127, but is still significantly above the July figures, which fluctuated in the range from $ 0.51 to $ 1,897.