After trading around $215, Ethereum showed a decline of almost 18%. Since the weekend, Ethereum has dropped below $210, $200 and $190. Ethereum is currently trading at around $196. However, analysts talk about the bullish potential of Ethereum. In their opinion, cryptocurrency has a chance to recover the losses that it suffered on the weekend.
The decrease in the price of Ethereum below $190 broke through the upward channel. This channel supported the upward momentum of Ethereum from the March decline. Since March, each maximum of Ethereum has become higher, approaching the upper boundary of the ascending channel. After each approach to the lower border, the price pushed up. However, the breakdown of the rising channel created the prerequisites for reducing the pair ETH/USD. Before the decline, the ETH/USD pair may rise to around $210.
The price of Ethereum can be supported by the announced update of ETH 2.0. The other day, news appeared on the network about the launch of Ethereum 2.0, known as Serenity, in July this year. This update addresses the issue of network scalability.
Also, Santiment website data says that in the light of speculation about the launch of Ethereum 2.0, investors continue to accumulate Ethereum in their wallets. Accumulation began in March. The number of addresses with a balance of 0.001 to 1000 ETH is growing rapidly. However, the accumulation of cryptocurrency in investors' wallets does not mean that the price will rise. This is most likely an indicator of confidence in cryptocurrency.