Late Friday, Ethereum was once again feeling the pinch of the broader crypto market, trading below $1,800, as prices retreated for the fourth consecutive session.
In spite of these little losses, the bearish momentum has prevented ETH from breaking through the $1,800 barrier in the last seven days.
After a sluggish pace in April, inflation surged again in May, which might have a negative influence on cryptocurrency markets already suffering from the Federal Reserve’s stricter monetary policies.
At the time of writing, ETH/USD has fallen to an intraday low of $1,761, less than 24 hours after reaching a high of $1,812.90. According to data from CoinMarketCap, the price of Ethereum has declined by more than 7 percent during the past 24 hours.
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The Ethereum price has continued to tumble under the dynamic resistance of the descending trendline since last month.
The aggressive sell-off ETH/USDT pair seen during mid-May surpassed the January low of $2170.
However, in the face of a growing instability in the crypto market, the selling pressure fell, resulting in a slow yet steady decline.
In spite of Ethereum’s intraday low of $1,761, a review of the previous week reveals a 0.33 percent price growth.
This has allowed ETH to remain above the $1,750 level, despite attempts by the bears to lower the price.
Other cryptocurrencies also took a heavy blow, including Solana (losing 9%), Avalanche (falling 10%), and Cardano, which has retreated by more than 10% in the past 24 hours.
Since the first half of last month the price of ETH has decreased in response to the descending trendline and has reached a new low of $1718. Multiple retests of this resistance indicate its significant impact on market players.
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Ethereum remains the month’s second-largest digital asset by market capitalization. In May, ETH had a market capitalization of approximately $235 billion.
The decline in Ethereum’s market capitalization can be traced to a broader selloff of digital assets over the past few weeks.
Meanwhile, Inflation is driving households to be more prudent with their spending management, especially those with lower incomes who spend a larger portion of their budget on basics, such as food and utility bills.
Economists believe that tighter budgets could limit demand for digital assets.