Ethereum may Fall to $140 Prior Dropping Wedge Sparks Next Race

Ethereum has plummeted down today at the same time as the Bitcoin drop below $ 8,000, which points to an underlying downtrend for the aggregate crypto market and may mean that significantly higher losses are expected for ETH before it can Find support and upload more.

An analyst now points out that Ethereum is trapped in a technical background that can take him at a price as low as $ 140 in the short term, but he also points out that this price level can cause the next bullfight that raises it up.

Ethereum plummets towards $ 170 while bears take control of cryptocurrency markets

At the time of writing, Ethereum is quoting down almost 3% at its current price of $ 172.5, which marks a notable drop in its daily highs of almost $ 180 that were set yesterday.

It is important to note that ETH found some support around $ 170 overnight, but the lack of follow-up in its subsequent rebound may indicate that the bulls have no notable strength at this time.

Importantly, Ethereum currently has solid foundations despite its current bassist, as Spencer Noon. A popular figure in the crypto industry, recently noted that a significant amount of ETH is currently locked in DeFi. Which means that DeFi's trend is leading to a lower circulation supply of Ethereum.

"$ ETH: price vs. fundamentals," he said concisely while pointing to the graphics below.
Assuming that the DeFi trend continues to gain broad support and use. It is likely that even more ETH will be temporarily removed from the circulation. Thereby reducing the circulating supply and creating pressure on the supply side.

ETH may go down before the next uptrend begins

The Crypto Dog, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that. Ethereum seems to be trapped in a large descending wedge. This may mean it will fall as low as $140 in the short term before it breaks above from the top. Limit of this wedge and arises higher.

“That mini wedge that falls in $ ETH, seems to be forming a bigger one now. It is still unclear if we get another "big drop" in all areas. But if we do, I'm looking at ~ $ 140 to accumulate a long FAT. If we go out and start trading above $ 190 again, I will yearn for new highs, "he explained.
The next hours and days will probably clarify whether the above-mentioned technical training will be developed or not. Or if it can increase further depending on the fundamentals of strengthening.