Ethereum plummets 24% over the weekend as peg assets plummet

Ethereum plummets 24% over the weekend as peg assets plummet - Ethereum Merge 850x478.jpg.optimalEthereum prices are still plummeting during the Asian trading session on Monday morning and the asset has lost 24% since the end of Friday. At the time of this writing, the quotation of ETH is equal to $ 1.350, an 8% decline on the day, while the sell-off continues.

On-chain analytics provider Glassnode reported that the Ethereum market fell below the real ETH price of $ 1.781. On June 12, when the asset plummeted to $ 1.453, it has lost even more since then.

The realization price of ETH 2.0 deposits is even higher, so the bear attack over the weekend led to unrealized losses of more than 40%.

ETH Betting Issues

There is a lot of concern that ETHs currently being shelved and blocked on Beacon Chain will spill over into the markets after this year's merger. This could lead to an even heavier price collapse. However, the assets will be released in stages several months after the merger.

Market analyst Alex Krüger noted that ETH has returned to its previous price peak during the 2018 cycle, but is now below that value today.

Technical indicators such as the RSI are in oversold territory for the ETH at the moment. While there may be a small rebound to the upside, the bear market is only deepening which means that Ethereum and all cryptocurrencies will suffer for a while.

There are also concerns about the protocols staking like Lido, which has almost a third of the total amount of the bets. According to industry experts, such centralization could cause a network attack.

Another problem is the de-pegging of the targeted assets. When users bet ETH on Lido, they get equivalent stETHs in return to use as collateral on other DeFi platforms. The large sell-off resulted in a divergence between the ETH's price and its stake token, which is currently trading 4,4% below its peg, according to CoinGecko.

Collapse of the price of Ethereum

Technical analysts predict a massive drop in Ethereum prices following the formation and confirmation of a head and shoulders pattern. According to this analyst, the price of ETH should be around $ 650.

Such a low collapse would result in a correction of nearly 87%, and considering that the last cycle saw ETH fall by 84%, it may not be far from this forecast.

On a positive note, Ethereum's long-term outlook is excellent, especially once it has transitioned to proof-of-stake and scaling updates are implemented. The offering issue was expected to become deflationary, but will continue to produce returns for investors, making it a unique asset.