Ethereum price has collapsed into a technical bear market after falling from the all-time high of $4,960 in August to the current $2,010. It has dropped for four consecutive weeks and is hovering near its lowest level since May last year. So, what’s next for the coin ahead of the upcoming White House crypto summit?
ETH Price to React to White House Crypto Summit
The main catalyst for the Ethereum price on Tuesday will be the upcoming White House crypto summit as deliberations on the CLARITY Act continue.
Top leaders across the crypto and banking sectors will meet later on Tuesday. This includes leaders of some of the biggest banks, like Goldman Sachs, JPMorgan, and Wells Fargo, who will attend the meeting. At the same time, executives from top crypto companies like Ripple Labs, Coinbase, and Circle will attend.
The two sides are trying to bridge a wide gap in the Market Structure Bill, commonly known as CLARITY, which stalled in the Senate last month. Banks are opposed to the idea of allowing crypto exchanges to offer stablecoin rewards, arguing that this will lead to cash outflow from their institutions. This, in turn, will affect the economy as these companies use the customer deposits to lend.
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Crypto companies, especially Coinbase, on the other hand, argue that allowing stablecoin yields will benefit their customers. They also argue that banks are working hard to fight the industry.
The hope, therefore, is that there will be a middle ground deal between the two sides, which will push the CLARITY Act to Congress, where it will be passed. Such a move will be beneficial for Ethe thereum price as it will lead to more regulatory clarity.
Still, a potential ETH rebound will depend on the performance of the broader crypto market. A Bitcoin rebound will benefit the coin later this week. At the same time, market participants will react to the upcoming US macro data, including retail sales, non-farm payrolls, and consumer inflation, which will come out on Tuesday, Wednesday, and Friday.
Ethereum Price Technical Analysis
The weekly timeframe chart shows that the ETH price has retreated sharply in the past few months and is now hovering near its lowest level since May last year. It has dropped below the 50 and 100-week Exponential Moving Averages (EMA), a sign that bears are in control.
On the positive side, the coin is hovering near the lower side of the ascending channel. This trendline connects the lowest swings since June 2022.
The coin has formed a rising broadening wedge, which is a common bullish continuation sign. It has also formed an inverted head-and-shoulders pattern, a common reversal sign.
Therefore, the most likely ETH price forecast is bullish as long as it remains above the lower side of the ascending channel. That is a sign that the coin’s crash is about to end considering that the Crypto Fear and Greed Index remains in the extreme fear zone.
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