The price of Ethereum was rejected at resistance and has created a bearish sell signal.
ETHUSD – Weekly Chart
The price of ETHUSD was sold at the $2,030 resistance level and has slumped to $1,853 in a bearish week for crypto. The top-performing coin on the week was Ziliqa, at a 3.5% gain.
The recent Shapella upgrade for Ethereum’s blockchain was vital because it released tokens staked for the Merge upgrade. There was always a risk that the return of those tokens could lead to heavy selling, which appears to be the case.
According to data firm Dune Analytics, the “staked ether” tokens were around 15% of all ether tokens, and the value was around $31 billion.
“The Shanghai/Shapella Upgrade is complete. Deposits & withdrawals for ETH, OP, ARB, and ERC-20 tokens via the Ethereum, Optimism, and Arbitrum networks are now back online,” Binance said.
Ethereum Price Prediction – ETH/USD
“The release of this previously unrealised investment may lead to significant downward price pressure if it is immediately liquidated,” Deutsche Bank analysts said.
There were bearish developments for crypto over the last two weeks with the release of the IMF’s Unicoin, which is slated to be a cross-border payments solution. Banks can utilise SWIFT-like payments, which could be a real headwind for Ripple XRP. The other headwind is the approval of European Parliament rules for crypto regulation. That could pave the way for the United States and other countries to follow. The EU hoped it was a “global standard-setter” for other nations to follow.
The approval of global rules for cryptocurrency may be a positive for the industry. However, the EU wants to track all payments above 1,000 euros so that it would spell the end of decentralisation.
Traders can look to further selling this week as the crypto market runs out of steam.
