Ethereum Price Drops Near $1,900! Will The Post-Shanghai Correction Extend Further?
After the successful implementation of the Shanghai upgrade, Ethereum has reached an 11-month high above $2,000, leading to speculation that its extended bearish trend may finally come to an end. However, the recent macro news regarding interest rate hikes has wiped out all the recent gains and plunged the leading altcoin near $1.9K. As ETH navigates through the post-Shanghai correction phase, many are left wondering whether the digital asset will manage to find its footing soon or continue to face downward pressure.
Investors Wait For Ethereum Options Expiry
Ethereum has seen a dramatic decrease in its supply over the last 218 days. With more than 103,092 ETH removed from circulation, the deflationary trend amounts to a staggering $197 million at current market prices. The network’s supply has declined by 0.146% annually, raising questions about the implications of this deflationary surge.
Ethereum monitoring site ‘ultrasound.money’ reveals that the current supply of ether stands at nearly 120,416,113 million coins. Over the last 30 days, the burn rate reached 1,125k ETH, with a supply growth of -0.37%.
Additionally, crypto derivatives traders have recently shown a preference for Ethereum options over their Bitcoin counterparts. As a result, approximately 217,000 ETH options contracts are on the brink of expiration, with a max pain point of $1,950 and a notional value of $4.2 billion. This price represents the level at which the most significant number of contract holders would experience financial losses upon expiration.
In a recent blog post by renowned crypto analytics firm Santiment, the company has reported substantial activity involving long-dormant Ethereum assets. The firm observed that two Ethereum addresses, which have remained untouched for almost half a decade, have now experienced significant movement. Historical trends suggest that such awakening of inactive assets often precedes notable market fluctuations, typically skewing toward an upward trajectory.
What Is Waiting For ETH Price Next?
Ethereum price has completed its small H&S pattern, and bears have successfully pushed the ETH price below the neckline at $1,940. The ETH price has fallen below the EMA-20 trend line, indicating massive bearish domination after the price failed to hold above $2K. However, if bulls gain control near $1,900, it may again climb to the level of $2K.
As of writing, ETH price trades at $1.9K, declining over 2.8% in the last 24 hours. Ethereum is expected to drop below the $1.9K level as the RSI line shows no sign of an upward reversal. If Ethereum drops below the EMA-50 trend line, there will be intense selling pressure, slumping the asset just above $1.7K.
