Late yesterday evening Ethereum it seemed once again affected by the overall performance of the cryptocurrency, trading below $ 1.800, with prices falling for the fourth consecutive session.
Despite these small losses, bearish momentum prevented a ETH to break through the $ 1.800 barrier in the past seven days. After a slow pace in April, inflation returned to rise in May, probably exerting a negative influence on the cryptocurrency markets, already penalized by the tighter monetary policies of the Federal Reserve.
At the time of writing, ETH / USD fell to an intraday low of $ 1.761, less than 24 hours after hitting a high of $ 1.812,90. According to data from CoinMarketCap, the price of Ethereum has dropped by more than 7% in the past 24 hours. The price of Ethereum also continued to fall below the dynamic resistance of the descending trendline from last month.
The aggressive sell-off of the ETH pair /USDT seen in mid-May, it surpassed the January low of $ 2170. However, in the face of the growing instability of the cryptocurrency market, the selling pressure has eased, resulting in a slow but steady decline.
Despite Ethereum's intraday low of $ 1.761, the previous week's review reveals price growth of 0,33%. This allowed ETH to stay above the $ 1.750 level despite attempts by the bears to bring the price down.
Other cryptocurrencies have also taken a hit, including Solarium (which lost 9%), Avalanche (down 10%) e Cardano, which has lost more than 10% in the past 24 hours.
Since the first half of last month, the price of ETH has declined in response to the descending trend line and reached a new low of $ 1718. Repeated tests of this resistance indicate its significant impact on market participants.
Anyway, Ethereum remains the second largest digital asset of the month by market capitalization. As of May, ETH had a market capitalization of approximately $ 235 billion. The decline in Ethereum's market cap can be traced to a larger slump in digital assets in recent weeks. In the meantime, however, inflation is pushing households to be more cautious in managing expenses, especially those with lower incomes who spend more of their budget on basic expenses, such as food and bills.