Ether reaches the critical support zone

by in Cryptocurrency News

Ethereum

The ether (ETH) rate today dropped to $605, the largest altcoin is facing a bigger drop.

The decline in the value of ETH is observed against the background of the correction of bitcoin, which dipped below $ 23,000 earlier this week. Over the past 24 hours, the capitalization of ether has decreased by 6% to $ 69.071 billion.

Now the coin is in a critical support zone, analysts say. However, if ETH cannot hold above $ 600, then the subsequent pullback will be deeper.

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The Santiment team drew attention to the warning signs. Her report says that the number of addresses containing between 1 and 100 ETH continues to decline.

Ethereum whale activity is also weakening. Major players refrain from further purchases. The wait-and-see tactic was most likely the result of the recent activation of ETH 2.0.

Investors calmed down a bit, which led to a short-term weakening in volatility and a correction in the altcoin price in general.