The price of Ethereum (ETH), is experiencing extreme instability around $1,490. Also, the monthly pivot for February, is also under severe pressure. The bearish squeeze is becoming more apparent as lower highs are established. ETH is also on the brink of a price collapse due to a number of factors on the chain. This could fuel the downward trend if the macroeconomic data proves to be unfavorable.
U.S. CPI Data Acting as Catalyst
The cryptocurrency market has been in turmoil in recent days. Ethereum has experienced a massive price correction, which has seen its value drop from $1,710 to $1,460 in the last 11 days. Although market factors are also important, the behavior of Ethereum whales can have a significant impact on price corrections.

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Statistics from the Ethereum blockchain show that whales with between 100,000 and 1,000,000 ETH redistributed or sold around 350,000 ETH during the 11-day period. This amount was $560 million. This large exodus may have contributed to the sharp decline in cryptocurrency’s price.
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If inflation stays the same, or even increases, then there will be a tendency to sell ETH. Traders need to be aware of one thing, despite the fact markets may still believe there will be a decline at some point. Inflation indicators and the inflation basket undergo minor but significant changes every ten years to better reflect real inflation.
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This modification already adds a little more weight to many headline aspects like food, apparel, technology. They all showed no indications of cooling and are even pointing towards a higher value because they are pointing toward a higher valuation. The inflation number is adjusted to ensure that it does not rise or remains unchanged, without taking into account the real numbers. It is possible to expect a knee-jerk reaction at $1,440. This is the location of the 55-day Simple Moving Averages and the 200-day Simple Moving Averages. Prices will then drop further towards $1,243. This is very close to the bottom as of February 2021.
Price Action for Ethereum (ETH).
Rekt Capital, a prominent crypto analyst, says that the ETH price is on track for a further decline, which could be similar to its previous multi-month downward trend.

$ETH is getting close to retesting its multi-month downtrend#ETH #Crypto #Ethereum https://t.co/P2sv8xK30l pic.twitter.com/YkIxq6ngS3
— Rekt Capital (@rektcapital), February 13, 2023

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Glassnode also announced that the supply of the 1m-3m (1dMA) has fallen to a one-month low of 10,456,635.485 Ethereum. This indicates that there is less trust in altcoin supremo at the moment, which could be a catalyst for the price drop.

As it stands now, Ethereum’s price is $1,487. This represents a decrease in value of 3% over 24 hours and a decline in value of 9% over seven days.
Also read: Rich Dad Poor Dad Author Predicts Valentine Day Massacre, Another Crypto Crash

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The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.

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