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The price of Ethereum (ETHUSD) fell for the second consecutive time ahead of the US elections. It is trading at $ 378, which is 1% below its close yesterday. It is also substantially below last week’s high of $ 422.
Other digital currencies are also in trouble, with Bitcoin Cash and EOS down 6% and 1.40% respectively.
The biggest concern among Ethereum investors was a sudden drop in total value related to decentralized finance (DeFi) yesterday. According to DeFi Pulse, the total value dropped to $ 8.33 billion yesterday. This was the lowest since September this year. As shown below, the value has returned to the current $ 10 level.
Ethereum is closely related to the DeFi industry because most developers use the Ethereum protocol. In fact, all 44 projects listed by DeFi Pulse, including Uniswap, Maker, WBTC, and Compound, are all built using Ethereum. Therefore, if there are problems in the sector, investors tend to react by selling their holdings in ETH.
Ethereum’s price is also falling ahead of the US elections. In their campaigns, the president and former president have not said what they will do for the cryptocurrency industry. However, if Trump wins, investors expect the status quo to remain.
More importantly, the price is under pressure after a whale dumped 4,000 ETH into the market at a time when liquidity was at its lowest.
Technical perspectives of the price of Ethereum
On the four-hour chart, we see that Ethereum’s price fell from last week’s high of $ 421.40 to a low of $ 370 today. The price also moved below the 28 and 14-day exponential moving averages. The awesome oscillator also moved below neutral. More importantly, the price seems to have moved below the neckline of the head and shoulders model.
Therefore, I suspect the price will continue to fall, with the next support at $ 350. On the other hand, a move above the psychological level of $ 400 will invalidate this trend.
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