Ethereum Flash Crash to $950 – Time to Buy or Sell ETH

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Ethereum is going through a significant price correction in 2022, falling by nearly 50% in June. Following a jump in the U.S CPI (Consumer Price Index) for May 2022, large whales are dumping Ethereum and causing the price of the largest altcoin in the world to plummet.

With the increasing fear among institutional and retail investors, can Ethereum face another crash to the $950 levels? This guide reviews the technical analysis of Ethereum and discusses whether users should buy or sell ETH in 2022.

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

Why is Ethereum Price Falling?

As of June 16th 2022, Ethereum is trading at $1,100. The popular altcoin has corrected by more than 40% since the beginning of June, after beginning the month at around the $1,900 level.

The current price is in stark contrast to ETH’s performance towards the end of 2021 – after reaching an all-time high of $4,891 in November 2021.

The cryptocurrency markets have been in panic mode since Mid-May after the popular stablecoin terraUSD (UST) collapsed after losing its peg to the US dollar. The collapse was followed by a 98% price correction in Luna, the stablecoins support coin.

This triggered a widespread crypto market correction, with Ethereum losing nearly 25% in the following week.

Furthermore, the price of Ethereum fell to $950 on June 13th, after the token plunged by more than 20% on Uniswap. This is the first time the token fell below the $1,000 mark since January 2021.

The Ethereum price correction results from more than 65,000 ETH ($71 million) being dumped on Uniswap, the popular decentralised crypto exchange. In bear market climates like the one we are experiencing, large coin dumps can often be detrimental to the token’s overall value.

In this instance, a single wallet dumped 65,000 tokens after over-leveraging its position.

Ethereum Technical Analysis

According to TradingView, the Ethereum price is in a “sell” position – with 15 sell, 9 neutral, and 2 buy indicators on the 1-day buying graph. Furthermore, essential metrics like the MACD indicators and exponential moving averages of ETH indicate further volatility in the token’s price.

Should you Buy or Sell ETH?

For users wondering if they should sell or buy ETH, we have analysed Ethereum price predictions from popular online algorithms below.

Wallet Investor (WI), an AI-based trading forecast algorithm, predicts further price volatility for Ethereum in the coming weeks. WI’s forecasts predict an average price of $840 per ETH token by the end of June 2022. This suggests a price decrease of more than 20%.

However, WI’s long-term price forecast is fairly positive, the AI software predicting Ethereum to trade as high as $3,060 on a Year-on-Year (YoY) basis. That is a 280% price increase from current levels.

Thus, users looking to invest in Ethereum should conduct their own information and analysis before investing in the market. Depending on an individual’s trading strategy and targets, a decision should be taken on whether to buy or sell ETH.

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

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Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.