Ethereum Subdued Below Key Technical Levels, Struggling to Pause the 6-Week Losing Streak

ETH/USD Analysis

Ethereum dropped to the lowest level since June 2021 (1,723.55) during last week's Crypto rout, which was its sixth consecutive losing one, erasing nearly 60% from its November record high at the time of writing.

Markets have been digesting a series of risk factors ranging from stagflation worries, to the prospects of tighter regulation of cryptocurrencies, while yesterday's tweet's from Ethereum co-founder Vitalik Buterin did not help.

In a series of tweets, he addressed conflicting views around Ethereum and the crypto market. Among other things he expressed his desire to see Ethereum become "a more Bitcoin-like system" and focus on long-term stability, something that would require "quite a lot of active coordinated short-term change". ^[1]

The two popular cryptocurrencies are definitely alike in their plunge from their record highs, which does not support the inflation hedge/safe-haven narrative.

ETH/USD managed to recover from last week's lows, but remains subdued during the current one, below the key 23.6% Fibonacci of the April High/May Low drop. This keeps risk firmly on the downside and the altcoin remains vulnerable to another shove towards 1,699, but it is probably early to talk for more losses that would threaten 1,397.

On the other hand, the cryptocurrencly stabilizes after last week rout and a successful break above key 23.6% Fibonacci (2,157-64) could open the door for a larger rebound towards the 38.2% level (2,434-48). However, Ethereum does not inspire much confidence for a meaningful recovery at this stage.