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Ethereum Falls Below $1,200 Threshold, $1,170 Is New Level to Watch: Crypto Market Review, Dec. 28

Wed, 12/28/2022 - 23:50
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Arman Shirinyan
Ethereum failing to gain traction on market without support of burning mechanism
Ethereum Falls Below $1,200 Threshold, $1,170 Is New Level to Watch: Crypto Market Review, Dec. 28
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The market's state ahead of New Year's Eve is always sad, and most investors simply avoid trading because of the lack of liquidity on the market and the unclear future of some sections of the market. One way or another, there is some movement on the cryptocurrency market, but it is not pretty.

Ethereum falls again

Ether's price performance is aggravating investors as the second biggest cryptocurrency loses its foothold above the $1,200 price threshold. However, the support level for ETH is not far away, and the asset will reach reversal ground in the next few days. If buying power occurs, we will see the retest of the aforementioned price level in the foreseeable future.

Source: TradingView

From a macro perspective, Ethereum is not doing so well as its issuance has been on the rise since the middle of December. The most likely outcome here would be the continuous increase of the coin's issuance and a slow reduction of the supply after the new year, as more investors come back to the market and bring more activity, which is going to fuel the acceleration of the burning mechanism on the market.

At press time, Ethereum is trading at $1,194 and might crawl back above $1,200 temporarily, but the midterm perspective does not look positive for the second biggest asset on the market yet.

Shiba Inu reaching new low

Unfortunately, the breakout we mentioned in one of our previous reviews happened, but not in the direction we wanted. The descending triangle's lower border was violated by SHIB's price, which led to a drop directly to $0.000007 — a price level we have not seen for half a year.

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As expected, the asset is not gaining any traction on the market due to the lack of inflows to risky assets like Shiba Inu, Dogecoin and other tokens that mostly attract investors due to their volatile nature rather than any use cases.

At press time, Shiba Inu is trading at $0.0000079 and might still have some ability to return to the long-awaited $0.00001 threshold.

LUNC finally reverses

The reversal on Luna Classic was expected. The end of the most recent uptrend was just a question of time as, fundamentally, the asset is still worthless and does not really bring any value after the implosion of the Terra ecosystem. After Binance made changes to LUNC's burning mechanism, the gloves were off.

Terra (LUNC) Price Dumps by 13%, Binance to Make Changes to Burning

Numerous attempts by current developers of Luna Classic to bring more value to the assets led to nothing but short-term rallies, and this brought nothing but temporary profit to holders of LUNC. This still has not covered the losses they took after the Terra catastrophe.

As with the last time, the rally has been fueled by the proposal of the lead developer to bring some top-notch L1 blockchain developers to finish some important projects that would help LUNC to gain more traction in the industry.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.